Test the Hypothesis That $\mu _ { 1 } > \mu _ { 2 }$

question 64

Essay

Test the hypothesis that $\mu _ { 1 } > \mu _ { 2 }$ . Two samples are randomly selected from normal populations. The sample statistics are given below.
$$\begin{array} { l l } \mathrm { n } 1 = 18 & \mathrm { n } _ { 2 } = 13 \\\overline { \mathrm { x } } 1 = 530 & \overline { \mathrm { x } _ { 2 } } = 515 \\\mathrm {~s} 1 = 40 & \mathrm {~s} _ { 2 } = 25\end{array}$$

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Definitions:

Replacement Cost

The current cost of replacing an asset with a new one of similar kind and quality.

Ending Inventory

The final valuation of goods available for sale at the conclusion of a reporting period, calculated using beginning inventory plus purchases minus cost of goods sold.

Lower Of Cost

A principle that requires inventory to be recorded at the lower of its historical cost or the market value.

Market Method

A valuation method that prices assets or liabilities based on current market prices or values.