In 2003, Computers of Brand a Controlled 25% of the Market

question 15

Essay

In 2003, computers of Brand A controlled 25% of the market, Brand B 20%, Brand C 10% and Brand D 45%. In 2004, sample data were collected from many randomly selected stores throughout the country. Of the 1200 computers sold, 280 were Brand A, 270 were Brand B, 90 were Brand C and 560 were Brand
D.Has the market changed since 2003? Test at the 1% significance level.

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting the cost of goods sold.

Weighted Average Periodic Method

An inventory costing method where goods are valued at an average cost, calculated periodically, taking into account the weight of each purchase.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus cost of goods sold (COGS).

Lower-of-cost-or-market

An accounting principle requiring that inventory be recorded at the lower of either its original cost or its current market price.