A Firm Is Concerned with Variability in Hourly Output at Several

question 55

Multiple Choice

A firm is concerned with variability in hourly output at several factories and shifts. Here are the results of an ANOVA using output per hour as the dependent variable (some information is missing) . $$\begin{array} { | l | c | c | c | c | c | } \hline \text { Source } & \text { Sum of Squares } & d f & \text { Mean Square } & \text { FRatio } & P \text {-value } \\\hline \text { Factory } & 19012.5 & 1 & 19012.5 & 26.427 & 0.000 \\\hline \text { Shift } & 258.333 & 2 & 129.167 & 0.180 & 0.838 \\\hline \text { Factory* Shift } & 80908.333 & 2 & 40454.167 & 56.230 & \\\hline \text { Error } & 8633.333 & 12 & 719.444 & & \\\hline \text { Total } & 108812.5 & 17 & 6400.735 & & \\\hline\end{array}$$ The p-value for the interaction effect is going to be:

• A)very small (near 0).
• B)very large (near 1).
• C)impossible to know-could be either large or small.

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Definitions:

Funded Status

The financial status of a pension plan, usually indicating the extent to which assets cover liabilities.

Past Service Cost

The cost of additional retirement benefits awarded for an employee's service in prior periods, typically arising from plan amendments.

Service Cost

The portion of the projected pension benefit that is attributed to employee's service in the current year, often used in accounting for pension expenses.

Defined Benefit Pension Plan

A retirement plan where employee benefits are calculated based on a formula considering factors like salary history and duration of employment, with the employer bearing the investment risk.