A corporate analyst is testing whether mean inventory turnover has increased.Inventory turnover in six randomly chosen product distribution centers (PDCs)is shown. The right-tailed critical value at $\alpha$ = 0.005 is:
A) 1.645
B) 1.479
C) 4.032
D) 2.015

Question

Quizplus · Accepted Answer

Since we are testing whether there is an increase in mean inventory turnover, we use a right-tailed test. The degrees of freedom for the numerator is 5 (number of PDCs - 1) and the degrees of freedom for the denominator is also 5. Using the F-distribution table, the critical value at a significance level of 0.005 and degrees of freedom of 5 for the numerator and denominator is 4.032. Therefore, the answer is C.

A Corporate Analyst Is Testing Whether Mean Inventory Turnover Has α\alphaα

A Corporate Analyst Is Testing Whether Mean Inventory Turnover Has $\alpha$