If Test a Has an Efficiency Rating of 0

question 18

Essay

If test A has an efficiency rating of 0.94 as compared to test B, explain what that efficiency rating means. Do comparable nonparametric or parametric tests have higher efficiency
ratings?

---

Definitions:

Variable Manufacturing Costs

Expenditures that shift in accordance with the volume of output, like raw materials and direct labor costs.

Selling Commission

A fee paid to salespersons or agents for selling a company's products or services, usually a percentage of the sale price.

Net Operating Income

An accounting term representing the profit derived from a company's everyday, non-financial activities and excluding extraordinary items.

CVP Analysis

Short for Cost-Volume-Profit Analysis, it's a management accounting technique used to analyze how changes in costs and volume affect a company’s operating income and net income.