Independent Random Samples Taken at Two Companies Provided the Following

question 79

Short Answer

Independent random samples taken at two companies provided the following information regarding annual salaries of the employees.
$\begin{array}{lll}&\text { Company A }&\text { Company B }\\\text { Sample Size } & 72 & 50 \\\text { Sample Mean in } \$ 1,000) & 48 & 43 \\\text { Population Standard Deviation in } \$ 1,000) & 12 & 10\end{array}$
a. We want to determine whether or not there is a significant difference between the average salaries of the employees at the two companies. Compute the test statistic.
b. Compute the p-value; and at 95% confidence, test the hypotheses.

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Definitions:

Inventory Turnover

Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.

Operating Cycle

The period between the acquisition of inventory by a business and the collection of accounts receivable generated from the sale of that inventory.

Acquisition Of Inventory

The process through which a business purchases goods to be sold, which may be raw materials for manufacturing or finished goods for resale.

Collection Of Cash

The process by which businesses gather or accumulate monetary payments received from customers.