An Entrepreneur Is Considering the Purchase of a Coin-Operated Laundry

question 167

Multiple Choice

An entrepreneur is considering the purchase of a coin-operated laundry. The current owner claims that over the past 5 years, the average daily revenue was $675 with a standard deviation of $75. A sample of 30 days reveals a daily average revenue of $625. If you were to test the null hypothesis that the daily average revenue was $675, which test would you use?

• A) Z-test of a population proportion
• B) Z-test of a population mean
• C) t-test of a population proportion
• D) t-test of population mean

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Definitions:

Sales

The transactions involving the exchange of goods or services for money, representing a key revenue source for most businesses.

Indirect Costs

Expenses related to operations that are not directly tied to a specific product or service, such as overhead or administrative expenses.

Cost Of Goods Manufactured

The total production cost of goods that are completed during a specific accounting period, including materials, labor, and overhead.

Cost Of Goods Manufactured

The total expense incurred by a company to produce goods during a specific period, including labor, material, and overhead costs.