The Lanier Company produces a single product on three production lines that use different equipment. The production

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The Lanier Company produces a single product on three production lines that use different equipment.

The production manager is considering changing the layouts of the lines and would like to know what effects different layouts would have on production output. Suppose that the manager measured the average output for each line over four randomly selected weeks using each of the three layouts under consideration. The output (in hundreds of units produced) was measured for each line for each of the four weeks for each layout being evaluated. The results of the study are as follows:

Line 1 Line 2 Line 3 Layout 1 12 12 11 10 14 10 12 10 14 12 11 12 Layout 2 17 16 18 18 15 18 15 16 17 17 17 18 Layout 3 12 10 11 12 11 11 11 11 10 11 11 12

a. Based on the sample data, can the production manager conclude that there is an interaction effect between the type of layout and the production line?

Conduct the appropriate test at the 0.05 level of significance.

b. At the 0.05 level of significance, can the production manager conclude that there is a difference in mean output across the three production lines?

c. At the 0.05 level of significance, can the production manager conclude that there is a difference in mean output due to the type of layout used?

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Business Statistics

ISBN: 9781292220383

10th Global Edition

Authors: David Groebner, Patrick Shannon, Phillip Fry

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