A manufacturer of automobile transmissions uses two differen

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 below.

What is the critical value of F at the 1% level of significance?

5.98

10.22

8.29

4.41

Solution

Here, there are 2 processes, so

df1 = k - 1 = 2 - 1 = 1

Now, there are 10 + 10 = 20 participants. Thus,

df2 = N - k = 20 - 2 = 18

Thus, at 0.01 level, the critical F is

Fcrit = 8.285419555 = 8.29 [ANSWER, C]