This question is for my business statistics class. ANOVA is a hypothesis testing

Question

This question is for my business statistics class.

ANOVA is a hypothesis testing technique used to compare the equality of means for two or more groups; for example, it can be used to test that the mean number of computer chips produced by a company on each of the day, evening, and night shifts is the same. Give an example of an application of ANOVA in an industrial, operations, or manufacturing setting that is different from the examples provided in the course. Discuss and share this information with your classmates.

Explanation / Answer

The company that is the focus of this investigation has developed cash balances that exceed the immediate working capital needs of the company. Within a year, however, the company anticipates that the cash will be required to support operations.

In the intervening period, the company's business problem related to the excess cash balances is how best to invest the excess funds. The investment criteria are as follows:

Preserve the principal value of the funds

Assure liquidity within a six-to-12 month timeframe

Optimize earnings on funds invested by balancing yield rate and yield volatility concerns

The proposed solution for the investment of the company's excess cash balances is to invest the funds in short-term United States Treasury bills. United States Treasury bills fulfill the criterion of preserving the principal value of the funds, as United States Treasury obligations are the lowest risk investment options available.

The solution alternatives are (a) four-week United States Treasury bills, (b) three-month United States Treasury bills, and (c) six-month United States Treasury bills. Each of these alternative investment vehicles fulfills the criterion of

Assessing Return and Volatility Concerns Related to the Three Investment Vehicles

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.