At the Billy Goat Gruff Inn, Machines Are Set to Dispense

question 24

Essay

At the Billy Goat Gruff Inn, machines are set to dispense 600 ml of soda into everycustomer's glass. Over time, however, the machine can get "out of control" and dispense toomuch soda or too little. The machine needs adjustment if the mean amount dispensed isdifferent than 600 ml. At a randomly selected time each clock hour, the owner dispenses andchecks a glass of soda and determines the actual volume of soda dispensed. One day thevolumes (in ml) of the dispensed soda were:
Is there sufficient evidence to conclude that the dispensing machine needs adjustment?

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment.

Interest Tax Shield

The reduction in income taxes that results from the deductibility of interest expense from taxable income.

Capital Structure

The mix of debt and equity financing a company uses for its operations and growth.