A National Manufacturer of Ball Bearings Is Experimenting with Two

question 77

Multiple Choice

A national manufacturer of ball bearings is experimenting with two different processes for producing precision ball bearings. It is important that the diameters be as close as possible to an industry standard. The output from each process is sampled and the average error from the industry standard is calculated. The results are presented below. The researcher is interested in determining whether there is evidence that the two processes yield different average errors.
Ball Bearings
Hypothesis Test: Independent Groups (t-test, pooled variance)
What is the decision at the 1% level of significance?

• A) Reject the null hypothesis and conclude the means are different.
• B) Reject the null hypothesis and conclude the means are the same.
• C) Fail to reject the null hypothesis and conclude the means are the same.
• D) Fail to reject the null hypothesis and conclude the means are different.

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Definitions:

Dilutive Securities

Financial instruments that could reduce earnings per share if converted to common stock, such as warrants and convertible bonds.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to some of the numbers more than others.

Ordinary Shares

Shares of a company providing ownership rights and potential dividends to holders but usually with voting rights.

Tax Expense

The sum of the current tax and deferred tax charged to an entity's profit or loss for the period.