Instruction 11-3
as Part of an Evaluation Program, a Sporting

question 113

True/False

Instruction 11-3
As part of an evaluation program, a sporting goods retailer wanted to compare the downhill coasting speeds of four brands of bicycles. She recorded three trials of each brand and determined their maximum downhill speeds. The results are presented in kilometres per hour in the table below.
$$\begin{array} { | l | l | l | l | l | } \hline \text { Trial } & \text { Barth } & \text { Tornado } & \text { Reiser } & \text { Shaw } \\\hline 1 & 43 & 37 & 41 & 43 \\\hline 2 & 46 & 38 & 45 & 45 \\\hline 3 & 43 & 39 & 42 & 46 \\\hline\end{array}$$
-Referring to Instruction 11-3,the test is less sensitive to the assumption that the population of speeds has the same variance for the four brands if the sample sizes of the four brands are equal.

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Definitions:

Break Even

The point at which total costs and total revenues are equal, resulting in no profit or loss for a business.

Fixed Costs

Expenses that remain constant regardless of the amount of goods produced or sold, including items like lease payments, wages, and insurance costs.

Marginal Cost

The increase in cost resulting from the production of one additional unit of a product or service.

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, and insurance premiums.