A Manufacturer of Automobile Transmissions Uses Three Different Processes

question 30

Multiple Choice

A manufacturer of automobile transmissions uses three different processes. The management ordered a study of the production costs to see if there is a difference among the three processes. A summary of the findings is shown below. What are the degrees of freedom for the numerator of the F ratio?

• A) 2
• B) 3
• C) 10
• D) 27

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Definitions:

Dependent Variable

A variable in an experiment or study whose changes are determined by the presence or variation of one or more independent variables.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Investment

The allocation of capital to purchase assets or securities with the expectation of generating future profits or income.

Slope

A measure of the steepness or inclination of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.