(BQ) Part 2 book "Statistical techniques in business & economics" has contents: Analysis of variance, correlation and linear regression, correlation and linear regression, time series and forecasting, statistical process control and quality management, statistical process control and quality management,.and other contents. | 11/2/10 12 Learning Objectives 10:22 PM Page 410 Analysis of Variance When you have completed this chapter, you will be able to: LO1 List the characteristics of the F distribution and locate values in an F table. LO2 Perform a test of hypothesis to determine whether the variances of two populations are equal. LO3 Describe the ANOVA approach for testing differences in sample means. LO4 Organize data into appropriate ANOVA tables for analysis. LO5 Conduct a test of hypothesis among three or more treatment means and describe the results. LO6 Develop confidence intervals for the differences between treatment means and interpret the results. LO7 Carry out a test of hypothesis among treatment means using a blocking variable and understand the results. LO8 Perform a two-way ANOVA with interaction and describe the results. A computer manufacturer is about to unveil a new, faster personal computer. The new machine clearly is faster, but initial tests indicate there is more variation in the processing time, which depends on the program being run, and the amount of input and output data. A sample of 16 computer runs, covering a range of production jobs, showed that the standard deviation of the processing time was 22 (hundredths of a second) for the new machine and 12 (hundredths of a second) for the current machine. At the .05 significance level, can we conclude that there is more variation in the processing time of the new machine? (See Exercise 24 and LO2.) 11/2/10 10:22 PM Page 411 411 Analysis of Variance Introduction In this chapter, we continue our discussion of hypothesis testing. Recall that in Chapters 10 and 11 we examined the general theory of hypothesis testing. We described the case where a sample was selected from the population. We used the z distribution (the standard normal distribution) or the t distribution to determine whether it was reasonable to conclude that the population mean was
