Perfect Technologies has estimated bad debts using the percentage-of-sales method since their business began operations in 2008. Information relating to bad debts and sales is as follows:
At the beginning of 2011, Perfect proposes changing their estimation of bad debt expense from 3 percent of sales to 2 percent. Sales for the year totaled $163,000 and actual bad debts amounted to $3,720.
Definitions:
Null Hypotheses
Postulates that assume no variance between specified variables in a study, used for statistical testing.
Research Hypotheses
Statements made by researchers that predict a relationship between two or more variables.
Total Sample Size
The aggregate number of observations or data points collected in a study.
F Value
A ratio used in ANOVA to determine whether the group means are from populations with the same mean; a higher F value indicates a more significant difference.
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