The Claim That "40% of Those Persons Who Retired from an Industrial

question 5

Multiple Choice

The claim that "40% of those persons who retired from an industrial job before the age of 60 would return to work if a suitable job was available," is to be investigated at the 0.02 level of risk. If 74 out of the 200 workers sampled said they would return to work, what is our decision?

• A) Do not reject the null hypothesis because -0.866 lies in the region between 0 and -2.33
• B) Do not reject the null hypothesis because -0.866 lies in the region between 0 and -2.58
• C) Reject the null hypothesis because 37% is less than 40%
• D) Do not reject the null hypothesis because 37% lies in the area between 0% and 40%

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Definitions:

Rate Variance

The difference between the actual rate paid for an item or service and the expected (standard) rate, used in budgeting and cost control.

Budget Variance

A measurement of the difference between the budgeted or planned amount of expense or revenue, and the actual amount incurred/sold.

Predetermined Overhead Rate

An estimated charge used to distribute overhead costs to products or projects, based on an expected standard, allowing for cost allocation before actual expenses are known.

Variable Component

The portion of costs or expenses that varies directly with changes in production volume or business activity.