A Researcher Is Interested in Testing to Determine If the Mean

question 26

Multiple Choice

A researcher is interested in testing to determine if the mean price of a casual lunch is different in the city than it is in the suburbs.The null hypothesis is that there is no difference in the population means (i.e.the difference is zero) .The alternative hypothesis is that there is a difference (i.e.the difference is not equal to zero) .He randomly selects a sample of 9 lunch tickets from the city population resulting in a mean of $14.30 and a standard deviation of $3.40.He randomly selects a sample of 14 lunch tickets from the suburban population resulting in a mean of $11.80 and a standard deviation $2.90.He is using an alpha value of .10 to conduct this test.Assuming that the populations are normally distributed, the critical t value from the table is _______.

• A)1.323
• B)1.721
• C)1.717 This is the value for 22 df (a wrong answer, but a detractor and corrected).
• D)1.321
• E)2.321

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Definitions:

Acid-test Ratio

A stringent test that measures the liquidity of a company by comparing its most liquid assets (excluding inventory) against its short-term liabilities.

Receivable Turnover

A financial ratio that measures how efficiently a company collects on outstanding accounts receivable during a particular period.

Inventory Turnover

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

Current Ratio

It's a measure of a corporation's capability to meet its immediate financial obligations using its current assets.