The accounting department analyzes the variance of the weekly unit costs reported by two 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 = .10. a. State the null and alternative hypotheses. Ho: 0 12 equal to H : 0 1 ? not equal to 2 b. Calculate the value of the test statistic (to 2 decimals). c. The p-value is between .10 and .20 v d. What is your conclusion? Cannot conclude that the departments differ in terms of unit cost variance v

MATLAB: An Introduction with Applications
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**Title: Analysis of Variance in Production Departments**

The accounting department analyzes the variance of the weekly unit costs reported by two 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 α = .10.

**a. State the null and alternative hypotheses.**

- Null Hypothesis (\(H_0\)): \(\sigma_1^2\) is equal to \(\sigma_2^2\)
- Alternative Hypothesis (\(H_a\)): \(\sigma_1^2\) is not equal to \(\sigma_2^2\)

(Check marks indicate these selections are correct.)

**b. Calculate the value of the test statistic (to 2 decimals).**

- Input box for the test statistic value (Incorrect entry shown by an error icon).

**c. The p-value is:**

- Between .10 and .20 (Check mark indicates this selection is correct).

**d. What is your conclusion?**

- Cannot conclude that the departments differ in terms of unit cost variance (Check mark indicates this selection is correct).
Transcribed Image Text:**Title: Analysis of Variance in Production Departments** The accounting department analyzes the variance of the weekly unit costs reported by two 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 α = .10. **a. State the null and alternative hypotheses.** - Null Hypothesis (\(H_0\)): \(\sigma_1^2\) is equal to \(\sigma_2^2\) - Alternative Hypothesis (\(H_a\)): \(\sigma_1^2\) is not equal to \(\sigma_2^2\) (Check marks indicate these selections are correct.) **b. Calculate the value of the test statistic (to 2 decimals).** - Input box for the test statistic value (Incorrect entry shown by an error icon). **c. The p-value is:** - Between .10 and .20 (Check mark indicates this selection is correct). **d. What is your conclusion?** - Cannot conclude that the departments differ in terms of unit cost variance (Check mark indicates this selection is correct).
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