A Formal Hypothesis Test Is to Be Conducted Using the Claim

question 38

Multiple Choice

A formal hypothesis test is to be conducted using the claim that the mean AC thermostat setting in restaurants is equal to 74° F. What is the null hypothesis and how is it denoted?

• A) \(H _ { 0 } : \mu = 74 ^ { \circ } \mathrm { F }\)
• B) \(H _ { 0 } : \mu \neq 74 ^ { \circ } \mathrm { F }\)
• C) \(H _ { 0 } : p = 74 ^ { \circ } \mathrm { F }\)
• D) \(H _ { 0 } : p < 74 ^ { \circ } \mathrm { F }\)

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Definitions:

Profit Margin Ratio

A financial metric that measures the percentage of profit a company produces from its total revenue.

Dividend Payout Ratio

A financial metric that measures the percentage of earnings paid to shareholders in dividends.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of a company in managing its costs and profit generation.

Retained Earnings

Retained earnings are the portion of a company's profits that are kept or retained within the company rather than paid out to shareholders as dividends, often used for reinvestment in the business or to pay down debt.