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Pipeline operators estimate that it costs between US$75 and US$500 to replace each seal, thus making the longer-lasting TOMOE valves more attractive. TOMOE does business with pipeline companies around the world. Suppose in an attempt to develop marketing materials, TOMOE marketers are interested in determining whether there is a significant difference in the cost of replacing pipeline seals in diff erent countries. Four countries – Canada, Colombia, Taiwan, and the United States – are chosen for the study. Pipeline operators from equivalent operations are selected from companies in each country. The operators keep a cost log of seal replacements. A random sample of the data follows. Use these data to help TOMOE determine whether there is a difference in the cost of seal replacements in the various countries. Explain your answer and say how TOMOE might use the information in its marketing materials.
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