Wenton Powersports produces dune buggies. They have three assembly lines, “Razor,” “Blazer,” and “Tracer,” named after the particular dune buggy models produced on those lines. Each assembly line was originally designed using the same target production rate. However, over the years, various changes have been made to the lines. Accordingly, management wishes to determine whether the assembly lines are still operating at the same average hourly production rate. Production data (in dune buggies/hour) for the last eight hours are as follows. (You may find it useful to reference the F table.)
Razor | Blazer | Tracer | ||||||||
11 | 10 | 9 | ||||||||
10 | 8 | 9 | ||||||||
8 | 11 | 11 | ||||||||
10 | 9 | 8 | ||||||||
9 | 11 | 8 | ||||||||
9 | 10 | 7 | ||||||||
13 | 11 | 8 | ||||||||
11 | 8 | 9 | ||||||||
a. Specify the competing hypotheses to test whether there are some differences in the mean production rates across the three assembly lines.
H0: μRazor = μBlazer = μTracer. HA: Not all population means are equal.
H0: μRazor ≤ μBlazer ≤ μTracer. HA: Not all population means are equal.
H0: μRazor ≥ μBlazer ≥ μTracer. HA: Not all population means are equal.
b-1. Construct an ANOVA table. Assume production rates are normally distributed. (Round intermediate calculations to at least 4 decimal places. Round "SS" to 2 decimal places, "MS", "p-value" to 4 decimal places, and "F" to 3 decimal places.)
b-2. At the 5% significance level, what is the conclusion to the test?
Do/Do not reject HO, we can/cannot conclude that the mean/buggies hour differ for some production lines.
b-3. What about the 10% significance level?
a) The null and the alternative hypothesis is:
H0: μRazor = μBlazer = μTracer. HA: Not all population means are equal.
b-1)
The ANOVA is done in excel.
Anova: Single Factor | ||||||
SUMMARY | ||||||
Groups | Count | Sum | Average | Variance | ||
Column 1 | 8 | 81 | 10.1250 | 2.4107 | ||
Column 2 | 8 | 78 | 9.7500 | 1.6429 | ||
Column 3 | 8 | 69 | 8.6250 | 1.4107 | ||
ANOVA | ||||||
Source of Variation | SS | df | MS | F | P-value | F crit |
Between Groups | 9.75 | 2 | 4.8750 | 2.6765 | 0.0922 | 3.4668 |
Within Groups | 38.25 | 21 | 1.8214 | |||
Total | 48 | 23 |
b-2) Since p value > 0.05, so at 5% level of significance we do not reject H0.
we cannot conclude that the mean/buggies hour differ for some production lines.
b-3) If level = 0.1, then p-value <0.1. In that case we reject H0.
we can conclude that the mean/buggies hour differ for some production lines.
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