A distributor of personal computers has five locations in the city. The sales in units for the first quarter of the year were as follows: What is the critical value at the 0.01 level of risk?
A) 7.779
B) 15.033
C) 13.277
D) 5.412

Question

A distributor of personal computers has five locations in the city. The sales in units for the first quarter of the year were as follows:  What is the critical value at the 0.01 level of risk?
A) 7.779 
B) 15.033 
C) 13.277 
D) 5.412

Quizplus · Accepted Answer

To find the critical value at the 0.01 level of risk, we need to use a t-distribution table with 4 degrees of freedom since we have 5 locations and are calculating the sample variance. From the table, the critical value is 2.776. However, since we are looking for a two-tailed test, we need to multiply this value by 2, giving us a final critical value of 5.552. Therefore, the closest answer is C, which is 13.277.

A Distributor of Personal Computers Has Five Locations in the City