EverRun Incorporated produces treadmills for use in exercise clubs and recreation centers. EverRun assembles, sells, and services

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EverRun Incorporated produces treadmills for use in exercise clubs and recreation centers. EverRun assembles, sells, and services its treadmills, but it does not manufacture the treadmill motors. Rather, treadmill motors are purchased from an outside vendor. Currently, EverRun is considering which motor to include in its new ER1500 series. Three potential suppliers have been identified: Venetti, Madison, and Edison; however, only one supplier will be used. The motors produced by these three suppliers are identical in terms of noise and cost. Consequently, EverRun has decided to make its decision based on how long a motor operates at a high level of speed and incline before it fails. A random sample of 10 motors of each type is selected, and each motor is tested to determine how many minutes (rounded to the nearest minute) it operates before it needs to be repaired. The sample information for each motor is as follows:

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a. At the a = 0.01 level of significance, is there a difference in the average time before failure for the three different suppliers’ motors?
b. Is it possible for EverRun to decide on a single motor supplier based on the analysis of the sample results? Support your answer by conducting the appropriate post-test analysis.
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Business Statistics A Decision Making Approach

ISBN: 9780133021844

9th Edition

Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry

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