A Manufacturer of Automobile Transmissions Uses Two Different Processes

question 71

Multiple Choice

A manufacturer of automobile transmissions uses two different processes. Management ordered a study of the production costs to see if there is a difference between the two processes. A summary of the findings is shown next. What is the critical value of F at the 5% level of significance?

• A) 19.45
• B) 3.00
• C) 4.41
• D) 4.38

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Definitions:

Outputs

The ultimate outputs, whether products, services or outcomes, produced by a system, process, or organization.

Supplies

Materials, equipment, or other items required for the operation of a business or the completion of a task.

Closed Systems

Systems that do not interact with the environment outside of themselves, limiting the exchange of matter or energy.

External Environment

Outside forces and conditions that influence the operations and outcomes of an organization or system.