A manufacturer of automobile transmissions uses three different processes. The management ordered a study of the production costs to see if there is a difference among the three processes. A summary of the findings is shown below. What is the critical value of F at the 1% level of significance?
A) 99.46
B) 5.49
C) 5.39
D) 4.61

Question

A manufacturer of automobile transmissions uses three different processes. The management ordered a study of the production costs to see if there is a difference among the three processes. A summary of the findings is shown below.  What is the critical value of F at the 1% level of significance?
A) 99.46 
B) 5.49 
C) 5.39 
D) 4.61

Quizplus · Accepted Answer

To find the critical value of F at the 1% level of significance, we need to look for the value at the intersection of the degrees of freedom for the numerator (2) and denominator (18) in the F-distribution table. The closest value to our answer is 5.49, which corresponds to choice B.

A Manufacturer of Automobile Transmissions Uses Three Different Processes