TABLE 11-2 an Airline Wants to Select a Computer Software Package for Package

question 10

Multiple Choice

TABLE 11-2
An airline wants to select a computer software package for its reservation system. Four software packages (1, 2, 3, and 4) are commercially available. The airline will choose the package that bumps as few passengers as possible during a month. An experiment is set up in which each package is used to make reservations for 5 randomly selected weeks. (A total of 20 weeks was included in the experiment.) The number of passengers bumped each week is obtained, which gives rise to the following Excel output:

-Referring to Table 11-2, at a significance level of 1%,

• A) there is insufficient evidence to conclude that the mean number of customers bumped by the 4 packages are not all the same.
• B) there is insufficient evidence to conclude that the mean number of customers bumped by the 4 packages are all the same.
• C) there is sufficient evidence to conclude that the mean number of customers bumped by the 4 packages are not all the same.
• D) there is sufficient evidence to conclude that the mean number of customers bumped by the 4 packages are all the same.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables reported on the balance sheet to reflect the amount that is expected to be uncollectible.

Uncollectible Accounts

Accounts receivable that a company does not expect to collect due to customers' inability to pay.

Percentage of Sales

A financial ratio that helps determine the relative profitability of a product by comparing the percentage of total sales that the product represents.

Aging Analysis

A method used to estimate the collectability of accounts receivable by categorizing them according to their age, usually in 30-day increments.