The Local Swim Team Is Considering Offering a New Semi-Private $\sigma$

question 94

Multiple Choice

The local swim team is considering offering a new semi-private class aimed at entry-level swimmers, but needs a minimum number of swimmers to sign up in order to be cost effective.Last year's data showed that during 8 swim sessions the average number of entry-level swimmers attending was 15.Suppose the instructor wants to conduct a hypothesis test and the alternative hypothesis is "the population mean is greater than 15." If the sample size is 5, $\sigma$ is known, and α = .01, the critical value of z is _______.

• A)2.575
• B)-2.575
• C)2.33
• D)-2.33
• E)2.45

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Definitions:

Volume Variance

The difference between the budgeted and actual volume of production, affecting fixed costs allocation.

Machine-Hours

A unit of measure representing the operation time of a machine, often used in allocating manufacturing costs based on machine usage.

Fixed Overhead Volume Variance

The difference between the budgeted fixed overhead and the applied fixed overhead, which is attributed to the variance in the volume of production.

Standard Labor-Hours

A measurement used in accounting to represent the number of labor hours expected to produce one unit of output.