The 0-1 variables in the fixed cost models correspond to a. a ...

[Garrulous]

The 0-1 variables in the fixed cost models correspond to
 a. a process for which a fixed cost occurs.
  b. the number of products produced.
  c. the number of units produced.
  d. the actual value of the fixed cost.

Question 2

A machine produces pipes used in airplanes. The average length of the pipe is 16 inches. The acceptable variance for the length is 0.3 inch. A sample of 25 pipes was taken. The average length in the sample was 15.95 inches with a variance of 0.4 inch.
 a. Construct a 95 confidence interval for the population variance.
  b. State the null and alternative hypotheses to be tested.
  c. Compute the test statistic.
  d. The null hypothesis is to be tested at the 5 level of significance. State the decision rule for the test.
 e. What do you conclude about the population variance?

[kjo;oj]

Answer to Question 1

A

Answer to Question 2

a. .2439 to .7741
b. H0: 2 = .3
Ha: 2  .3
c. 32
d. Do not reject H0 if 12.4011 < 2 < 39.3641
Reject H0 if 2 > 39.3641 or 2 < 12.4011
e. Do not reject H0, there is not sufficient evidence to conclude that the population variance is unacceptable.

[Garrulous]

Thanks for the timely response, appreciate it

[ricroger]

YES! Correct, THANKS for helping me on my review