A Mail-Order Business Prides Itself in Its Ability to Fill

question 46

Short Answer

A mail-order business prides itself in its ability to fill customers' orders in less than six calendar days,on average.Periodically,the operations manager selects a random sample of customer orders and determines the number of days required to fill the orders.On one occasion when a sample of 39 orders was selected,the average number of days was 6.65 with a population standard deviation of 1.5 days.Calculate the appropriate test statistic to test the hypotheses.

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Definitions:

Average Rate of Return

A method of assessing the profitability of an investment by dividing the average annual profit by the initial investment cost.

Average Investment

A calculation to assess the average amount of investment over a certain period, often used in evaluating the efficiency or profitability of an investment.

Time Value of Money

The concept that money available at the present time is worth more than the same amount in the future due to its earning capacity.

Net Present Value

A calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account.