The Owner of a Local Nightclub Has Recently Surveyed a Random

question 144

Multiple Choice

The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the club.She would now like to determine whether or not the mean age of her customers is greater than 30.If so,she plans to alter the entertainment to appeal to an older crowd.If not,no entertainment changes will be made.Suppose she found that the sample mean was 30.45 years and the sample standard deviation was 5 years.If she wants to have a level of significance at 0.01 what conclusion can she make?

• A)There is not sufficient evidence that the mean age of her customers is greater than 30.
• B)There is sufficient evidence that the mean age of her customers is greater than 30.
• C)There is not sufficient evidence that the mean age of her customers is not greater than 30.
• D)There is sufficient evidence that the mean age of her customers is not greater than 30.

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Definitions:

Debt Versus Equity

A comparison between using borrowed funds (debt) versus shareholder funds (equity) to finance business operations or growth.

Depreciation

The gradual reduction of the recorded cost of a fixed asset over its useful life.

Net Income

Net income is the total profit of a company after all expenses, including taxes and costs, have been subtracted from revenues.

Indirect Method

The indirect method is a way of calculating cash flows from operating activities for the cash flow statement by starting with net income and adjusting for changes in balance sheet accounts.