A New Company Is in the Process of Evaluating Its

question 2

Multiple Choice

A new company is in the process of evaluating its customer service. The company offers two types of sales: (1) Internet sales and (2) store sales. The marketing research manager believes that the Internet sales are more than 10 percent higher than store sales. The null hypothesis would be

• A) P_Internet − P_store > .10.
• B) P_Internet − P_store < .10.
• C) P_Internet − P_store ≥ .10.
• D) P_Internet − P_store ≤ .10.
• E) P_Internet − P_store = .10.

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Definitions:

Manufacturing Overhead

The indirect factory-related costs that are incurred when producing a product, including costs related to management, utilities, and equipment depreciation.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the manufacturing process and whose work can be easily traced to the product.

Manufacturing Overhead

All production costs other than direct labor and direct materials, which are incurred in the manufacturing process.

Direct Labor-Hours

An accounting term indicating the hours of work performed by employees directly involved in the creation of goods or services.