Instruction 11-1
an Airline Wants to Select a Computer Software

question 49

Multiple Choice

Instruction 11-1
An airline wants to select a computer software package for its reservation system. Four software packages (1, 2, 3, and 4) are commercially available. The airline will choose the package that bumps as few passengers as possible during a month. An experiment is set up in which each package is used to make reservations for five randomly selected weeks. (A total of 20 weeks was included in the experiment.) The number of passengers bumped each week is obtained, which gives rise to the following Microsoft Excel output:
$$\begin{array}{l}\text { ANOVA }\\\begin{array} { | l | c | c | c | c | c | c | } \hline \begin{array} { l } \text { Source of } \\\text { Varlation }\end{array} & \boldsymbol { S S } & d f & \boldsymbol { N S } & \boldsymbol { F } & \rho _ { \text {-vahe } } & \text { F crit } \\\hline \text { Between Groups } & \mathbf { 2 1 2 . 4 } & \mathbf { 3 } & & \mathbf { 8 . 3 0 4 9 8 5 } & \mathbf { 0 . 0 0 1 4 7 4 } & \mathbf { 3 . 2 3 8 8 6 7 } \\\hline \text { Within Groups } & \mathbf { 1 3 6 . 4 } & & \mathbf { 8 . 5 2 5 } & & & \\\hline & & & & & & \\\hline \text { Total } & \mathbf { 3 4 8 . 8 } & & & & & \\\hline\end{array}\end{array}$$
-Referring to Instruction 11-1,the within groups degrees of freedom is

• A) 19.
• B) 4.
• C) 16.
• D) 3.

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Definitions:

Winning Bidders

The individuals or entities that offer the highest bid in an auction and are subsequently awarded the item or contract.

Winner's Curse

A situation in which the winner of an auction ultimately overpays or incurs a loss because of overly optimistic valuation of the asset bid on.

Optimistic Estimate

A projection or forecast that assumes the most favorable conditions and outcomes for a given situation.

Bid Shading

A strategy where a bidder offers a lower price than what they are actually willing to pay, often used in auctions to acquire items at a lower price.