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TABLE 12-20
A filling machine at a local soft drinks company is calibrated to fill the cans at a mean amount of 12 fluid ounces and a standard deviation of 0.5 ounces.The company wants to test whether the standard deviation of the amount filled by the machine is 0.5 ounces.A random sample of 15 cans filled by the machine reveals a standard deviation of 0.67 ounces.
-Referring to Table 12-20,which is the appropriate test to use?
Machine Hours
A measure of the operating time of a machine, used in costing and budgeting to allocate expenses based on usage.
Units-Of-Production
A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces.
Depreciable Cost
The initial cost of an asset minus its salvage value, which is the amount that can be depreciated over the life of the asset.
Residual Value
The approximated price an asset will bring in at the conclusion of its operational life when it is sold.
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