A Severe Drought Affected Several Western States for 3 Years

question 21

Multiple Choice

A severe drought affected several western states for 3 years. A Christmas tree farmer is worried about thedroughtʹs effect on the size of his trees. To decide whether the growth of the trees has been retarded, the farmerdecides to take a sample of the heights of 25 trees and obtains the following results (recorded in inches) : $$\begin{array} { c c c c c c c c c c c c c } 60 & 57 & 62 & 69 & 46 & 54 & 64 & 60 & 59 & 58 & 75 & 51 & 49 \\67 & 65 & 44 & 58 & 55 & 48 & 62 & 63 & 73 & 52 & 55 & 50 &\end{array}$$ Which measure of central tendency would be considered the best measure to use in this problem?

• A) mean
• B) median
• C) mode
• D) range

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Definitions:

Machine-Hours

A unit of measure representing the operation of machinery or equipment for one hour, often used in allocating manufacturing overhead costs based on actual or budgeted machine usage.

Overhead Cost

Expenses related to running a business that cannot be directly tied to a specific product or service, such as utilities, rent, and administrative salaries.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming to provide more accurate cost information.

Activity Rate

The cost driver rate used in activity-based costing to allocate overhead costs to products or services.