Question

A manufacturer of automobile transmissions uses two different processes. Management ordered a study of the production costs to see if there is a difference between the two processes. A summary of the findings is shown next.
What is the critical value of F at the 1% level of significance?
a. 9.46
b. 8.29
c. 8.18
d. 4.61

Answer 1

Answer:

b. 8.29

Step-by-step explanation:

Hello!

The objective is to study both processes to see if there is any difference between the costs of manufacturing.

An ANOVA was conducted for the variable:

Y: cost of manufacturing automobile transmissions

Factor: Process

Treatments: 1 and 2

The statistic for this test is

$F= \frac{MS_{Treatment}}{MS_{Error}} ~~F_{k-1; n-k}$

Where

k= number of treatments

n= total number of observations

Degrees of freedom of the treatments: k-1= 2-1= 1

Degrees of freedom of errors: n-k= 20-2= 18

The critical region for this analysis is always one tailed to the right.

$F_{k-1;n-k;1-\alpha }= F_{1;18;0.90}= 8.28$

I hope this helps!