A manufacturer of automobile transmissions uses two different processes. Management ordered a study of the production costs to see if there is a difference between the two processes. A summary of the findings is shown next. What is the critical value of F at the 1% level of significance?
A)9.46
B)8.29
C)8.18
D)4.61

Question

A manufacturer of automobile transmissions uses two different processes. Management ordered a study of the production costs to see if there is a difference between the two processes. A summary of the findings is shown next.  What is the critical value of F at the 1% level of significance?
A)9.46 
B)8.29 
C)8.18 
D)4.61

Quizplus · Accepted Answer

To find the critical value of F at the 1% level of significance, we need to use the F-distribution table with degrees of freedom 24 and 26 (n1-1 and n2-1). Looking at the table, we find that the critical value is 8.29 (closest to 24 in the numerator and 26 in the denominator). Therefore, the answer is (B).

A Manufacturer of Automobile Transmissions Uses Two Different Processes