The Report Describes the Results of a Survey of 739

question 12

Multiple Choice

The report describes the results of a survey of 739 automobile owners age 18 to 29 and 564 automobile owners age 30 to 49 in a certain metropolitan area. Survey participants were asked if they own an automobile that is equipped with an electrical engine; 42% of the automobile owners age 18 to 29 and 36% of the automobile owners age 30 to 49 said "yes". Suppose you want to decide if there is evidence that the proportion of owners of automobiles equipped with electrical engine is different for age 18 to 29 and age 30 to 49.
What is the value of the test statistics and what is the associated P-value? If a significance level of 0.05 is selected for the test, will you reject or fail to reject the null hypothesis?

• A) ; ; We reject H₀; Assuming that the samples are representative of the populations of interest, we would conclude that the proportion of owners of automobiles equipped with electrical engine differs for age 18 to 29 and age 30 to 49.
• B) ; ; We reject H₀; Assuming that the samples are representative of the populations of interest, we would conclude that the proportion of owners of automobiles equipped with electrical engine differs for age 18 to 29 and age 30 to 49.
• C) ; ; We fail to reject H₀; Assuming that the samples are representative of the populations of interest, we would conclude that there is no evidence the proportion of owners of automobiles equipped with electrical engine differs for age 18 to 29 and age 30 to 49.
• D) ; ; We fail to reject H₀; Assuming that the samples are representative of the populations of interest, we would conclude that there is no evidence the proportion of owners of automobiles equipped with electrical engine differs for age 18 to 29 and age 30 to 49.
• E) ; ; We reject H₀; Assuming that the samples are representative of the populations of interest, we would conclude that the proportion of owners of automobiles equipped with electrical engine differs for age 18 to 29 and age 30 to 49.

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Definitions:

Estimated Cost

An approximation of the costs associated with a project or production, prior to actual expenditure.

Lower of Cost or Market (LCM)

Lower of Cost or Market (LCM) is an accounting principle requiring inventory to be recorded at the lower of its historical cost or current market value to reflect any decrease in the value of inventory.

Ending Inventory Costs

The total value of all the goods that a company has in stock at the end of an accounting period, before any adjustments or cost of goods sold calculations.

LIFO Periodic Inventory Method

An inventory valuation method where the last items purchased are the first items considered sold during a given period, calculated periodically.