When the Necessary Conditions Are Met, a Two-Tail Test Is $p _ { 1 } - p _ { 2 }$

question 37

Short Answer

When the necessary conditions are met, a two-tail test is being conducted to test the difference between two population proportions. The two sample proportions are p₁ = 0.25 and p₂ = 0.20 and the standard error of the sampling distribution of $p _ { 1 } - p _ { 2 }$ is 0.04. The calculated value of the test statistic will be: $\begin{array}{|l|l|}\hline A.&z=0.25\\\hline B.&z=1.25\\\hline C.&t=0.25\\\hline D.&t=0.80\\\hline \end{array}$

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Definitions:

Direct Material Quantity Variance

The variance between the real amount of materials consumed in production and the anticipated standard quantity, multiplied by the cost per unit set by standards.

Actual Production

The total amount of output that a company has produced within a specific period.

Normal Production

Normal Production refers to the average amount of goods or services produced during a specific period under typical operating conditions.

Favourable Variances

Differences between expected and actual performance that are beneficial to a company's financial health.