TABLE 10-9 The Following Excel Output Contains the Results of a Test

question 116

Multiple Choice

TABLE 10-9
The following Excel output contains the results of a test to determine whether the proportions of satisfied customers at two resorts are the same or different.

-Referring to Table 10-9, if you want to test the claim that "Resort 1 (Group 1) has a lower proportion of satisfied customers compared to Resort 2 (Group 2) ," you will use

• A) a t test for the difference between two proportions.
• B) a Z test for the difference between two proportions.
• C) an F test for the difference between two proportions.
• D) an F test for the ratio of two variances.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating a company’s fixed versus variable costs.

Variable Costs

Charges that adjust in direct proportion to the manufacturing output or the quantity of sales.

Fixed Costs

These are consistent expenses incurred by a business, regardless of production levels or sales volumes, such as rent or salaries.

Profit-Volume Chart

A chart plotting only the difference between total sales and total costs for various levels of units sold.