A Manufacturer of Cell Phone Batteries Claims That the Median

question 51

Multiple Choice

A manufacturer of cell phone batteries claims that the median life of a battery is more than 40 hours. Suppose a random sample of 75 batteries finds that 32 have a life of more than 40 hours. State the null hypothesis to test the claim. Assume that the population of all battery lives is not normally distributed.

• A) H₀: M_d ≥ 40
• B) H₀: M_d ≠ 40
• C) H₀: M_d > 40
• D) H₀: M_d ≤ 40

---

Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the owners' claim on the company's assets.

Inventory Turnover

A financial ratio indicating how many times a company has sold and replaced inventory over a specific period.

Cost of Goods Sold

This refers to the total cost of all the ingredients or materials used to create a product, including labor and manufacturing overhead, subtracted from revenue to calculate gross profit.

Inventory

Inventory represents the goods and materials that a business holds for the ultimate goal of resale or production, encompassing raw materials, work-in-progress, and finished goods.