A Manager of the Credit Department for an Oil Company

question 125

Multiple Choice

A manager of the credit department for an oil company would like to determine whether the mean monthly balance of credit card holders is equal to $75. An auditor selects a random sample of 100 accounts and finds that the mean owed is $83.40 with a sample standard deviation of $23.65. If you were to conduct a test to determine whether the mean balance is different from $75 and decided to reject the null hypothesis, what conclusion could you draw?

• A) There is not evidence that the mean balance is $75.
• B) There is not evidence that the mean balance is not $75.
• C) There is evidence that the mean balance is $75.
• D) There is evidence that the mean balance is not $75.

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Definitions:

Completed Unit

A unit of product that has completed the manufacturing process and is considered ready for sale or delivery to the customer.

Actual Rate

The real interest rate or exchange rate that is applied in current transactions, distinct from theoretical or future rates.

Standard Rate

A predetermined cost or price used in budgeting and costing exercises, reflecting an expected or agreed level of expenditure or charge.

Variable Factory Overhead Controllable Variance

The difference between the actual and budgeted variable overhead costs that management has the ability to influence or control.