Stable cost reporting in a manufacturing setting is typically a sign that operations are running smoothly. The accounting department at Rockwell Collins, an avionics manufacturer, analyzes the variance of the weekly costs reported by twe its production departments. A sample of 16 cost reports for each of the two departments shows cost variances of 2.3 and 5.4, respectively. Is this sample sufficient to conclude that the two production departments differ in terms of unit c variance? Use a = 0.10 (to 2 decimals). Ho : o = H, : o Test statistic = Do not reiect the null hypothesis v

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Stable cost reporting in a manufacturing setting is typically a sign that operations are running smoothly. The accounting department at Rockwell Collins, an avionics manufacturer, analyzes the variance of the weekly costs reported by two of
its production departments. A sample of 16 cost reports for each of the two departments shows cost variances of 2.3 and 5.4, respectively. Is this sample sufficient to conclude that the two production departments differ in terms of unit cost
variance? Use a = 0.10 (to 2 decimals).
Ho : o =
H: o+
Test statistic =
Do not reject the null hypothesis v
Transcribed Image Text:Hint(s) | Check My Work Stable cost reporting in a manufacturing setting is typically a sign that operations are running smoothly. The accounting department at Rockwell Collins, an avionics manufacturer, analyzes the variance of the weekly costs reported by two of its production departments. A sample of 16 cost reports for each of the two departments shows cost variances of 2.3 and 5.4, respectively. Is this sample sufficient to conclude that the two production departments differ in terms of unit cost variance? Use a = 0.10 (to 2 decimals). Ho : o = H: o+ Test statistic = Do not reject the null hypothesis v
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