The Mean Gross Annual Incomes of Certified Tack Welders Are

question 20

Multiple Choice

The mean gross annual incomes of certified tack welders are normally distributed with the mean of $50,000 and a standard deviation of $4,000. The ship building association wishes to find out whether their tack welders earn more or less than $50,000 annually. The alternate hypothesis is that the mean is not $50,000.
Given the following megastat printout, what conclusions can be made?

• A) There is a 1.68% chance of getting these sample results if the annual income is actually $50,000.
• B) Since the p-value is 7%, we reject the null hypothesis at a 5% level of significance.
• C) Since the p-value is 9%, we have insufficient evidence to reject the null hypothesis at the 5% level of significance.
• D) Since the p-value is 9%, we reject the null hypothesis at the 1% level of significance.
• E) None of these statements are correct.

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Definitions:

Cash Inflows

The total amount of money being received by a company from its various business activities, such as sales revenue, investments, and loans.

Cash Outflows

Cash outflows represent money leaving a business, covering expenses like payroll, rent, materials, and other operational costs, crucial for cash flow management.

Present Value

The current value of a future amount of money or stream of cash flows, discounted back to the present using a specific discount rate.

Equal Annual Cash Flows

A series of identical cash amounts that occur at equal intervals over a period of time, commonly used in financial analysis.