$\mathrm { s } _ { 1 } = 20.4 , \mathrm { n } _ { 1 } = 16 , \mathrm {~s} _ { 2 } = 21.9 , \mathrm { n } _ { 2 } = 13$

question 71

Multiple Choice

$\mathrm { s } _ { 1 } = 20.4 , \mathrm { n } _ { 1 } = 16 , \mathrm {~s} _ { 2 } = 21.9 , \mathrm { n } _ { 2 } = 13$ left-tailed test, $\alpha$
=0.10
Test the hypothesis that $\sigma _ { 1 } < \sigma _ { 2 } \text { at the } \alpha = 0.10$ level of significance for the given sample data.
$\begin{array} { c | c c } & \text { Population 1 } & \text { Population 2 } \\\hline \mathrm { n } & 16 & 13 \\\mathrm {~s} & 20.4 & 21.9\end{array}$

• A) Test statistic: F=0.87 . Critical value =0.495 . Do not reject H₀
• B) Test statistic: F=0.87 . Critical value =0.476 . Do not reject H₀
• C) Test statistic: F=0.87 . Critical value =0.495 . Reject H₀
• D) Test statistic: F=0.87 . Critical value =0.476 . Reject H₀

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Definitions:

Variable Cost per Unit

The cost associated with producing one unit of a product, which varies with the level of production or sales volume.

Annual Fixed Costs

The total fixed costs a company incurs over a year, which do not vary with the level of production or sales.

Return on Investment

A measure of the profitability and efficiency of an investment, calculated by dividing net profits by the cost of the investment.

Residual Income

Profit remaining after deducting all costs, including the cost of capital, usually used in managerial accounting as a performance measure.