(Solution) - A dairy is in the market for a new container filling -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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A dairy is in the market for a new container-filling machine and is considering two models, manufactured by company A and company B. Ruggedness, cost, and convenience are comparable in the two models, so the deciding factor is the variability of fills. The model that produces fills with the smaller variance is preferred. If you obtain samples of fills for each of the two models, an F-test can be used to test for the equality of population variances. Which type of rejection region would be most favored by each of these individuals?
a. The manager of the dairy-Why?
b. A sales representative for company A-Why?
c. A sales representative for company B-Why?