A Random Sample of 40 Companies with Assets Over $10

question 49

Multiple Choice

A random sample of 40 companies with assets over $10 million was selected and asked for their annual computer technology expense and industry.The ANOVA comparing the average computer technology expense among three industries rejected the null hypothesis.The Mean Square Error (MSE) was 195.The following table summarized the results: Based on the comparison between the mean computer technology expense for companies in the Tax Service and Food Service industries,the 95% confidence interval shows an interval of -14.85 to 5.85 for the difference.This result indicates that

• A)There is no significant difference between the two expenses.
• B)The interval contains a difference of 20.7.
• C)Companies in the Tax Service industry spend significantly less than companies in the Food Service industry.
• D)Companies in the Food Service industry spend significantly less than companies in the Tax Service industry.

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Definitions:

Materials Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.

Activity-Based Product Costing

A costing method that assigns costs to products based on the activities they require, focusing on the relationship between costs, activities, and products.

Product Line

A group of related products marketed by the same company under a single brand.

Cheap

An adjective describing products or services that are low in price, often implying lower quality or less prestige.