SCENARIO 10-14 the Use of Preservatives by Food Processors Has Become a Become

question 7

Multiple Choice

SCENARIO 10-14
The use of preservatives by food processors has become a controversial issue.Suppose two preservatives are extensively tested and determined safe for use in meats.A processor wants to compare the preservatives for their effects on retarding spoilage.Suppose 15 cuts of fresh meat are treated with preservative I and 15 are treated with preservative II,and the number of hours until spoilage begins is recorded for each of the 30 cuts of meat.The results are summarized in the table below.

-Referring to Scenario 10-14,suppose α = 0.05.Which of the following represents the correct conclusion?

• A)There is no evidence of a difference in the population variances between preservatives I and II.
• B)There is evidence of a difference in the population variances between preservatives I and II.
• C)There is no evidence that the population variances between preservatives I and II are the same.
• D)There is evidence that the population variances between preservatives I and II are the same.

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Definitions:

Cost Of Capital

The minimum return rate a company needs to achieve on its investments to preserve its market valuation and draw in financing.

Cash Flow

The total sum of cash and cash-like assets moving in and out of a company.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Cost Of Capital

The essential yield required to justify proceeding with a capital expenditure venture, such as the erection of a new plant.