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Jasmine Morron is examining a statistical control chart on the recent cost report of her manufacturing company. Jasmine is focusing on one specific process, the labour efficiency variance of polishing. She determines that the critical values for this process are $1000. The labour efficiency variances for the last 6 months were all favourable: $500F (July) , $600F (August) , $750F (September) , $880F (October) , $900F (November) and $990F (December) . Jasmine decides not to investigate these variances. Do you agree with her decision?
Degrees of Freedom
Refers to the number of independent values or quantities that can vary in a statistical analysis without breaking any constraints.
ANOVA F Test
A statistical test used in analysis of variance (ANOVA) to determine if there are significant differences between the means of three or more groups.
Explanatory Variables
Variables in a statistical model that are used to explain variations in the dependent variable.
Multiple Regression
A statistical technique used to predict the outcome of a dependent variable based on multiple independent variables.
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