A Research Firm Wants to Compare the Miles Per Gallon

question 36

Essay

A research firm wants to compare the miles per gallon (mpg)for three different types of gasoline.To control for the performance of different types of cars,seven types of cars were used as the blocks.The study yielded the below as the following incomplete two-way ANOVA table. a.Complete the ANOVA table.
b.At the 5% significance level,can you conclude if the average mpg differs by gas type?
c.At the 5% significance level,can you conclude if the average mpg differs by car type?

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Definitions:

Direct Materials Quantity Variance

The discrepancy between the true usage of direct materials in production processes and the forecasted standard usage, multiplied by the standard unit cost.

Total Direct Materials Cost Variance

The difference between the actual cost of direct materials used in production and the standard cost of those materials.

Fixed Overhead Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Volume Variance

A measure used in budgeting and accounting to show the difference between expected (budgeted) and actual sales volumes, affecting revenue or costs.