A Local Consumer Reporter Wants to Compare the Average Costs

question 30

Multiple Choice

A local consumer reporter wants to compare the average costs of grocery items purchased at three different supermarkets, A, B, and C. Prices (in dollars) were recorded for a sample of 60 randomly selected grocery items at each of the three supermarkets. In order to reduce item-to-item variation,
The prices were recorded for each item on the same day at each supermarket.
$\begin{array} { c l r c c } \hline & { \text { Item } } & \text { A } & \text { B } & \text { C } \\\hline \text { 1) } & \text { paper towels } & 1.23 & 1.43 & 1.38 \\\text { 2) } & \text { cereal } & 2.70 & 3.15 & 2.90 \\\text { 3) } & \text { floor cleaner } & 6.09 & 5.97 & 6.98 \\\vert &\vert&\vert&\vert& \vert \\59 ) & \text { shaving cream } & 1.09 & 0.99 & 1.05 \\60 ) & \text { canned green beans } & 0.55 & 0.70 & 0.47 \\\hline\end{array}$


Identify the blocks for this experiment.

• A) the 60 grocery items
• B) the \(60 \times 3 = 180\) prices
• C) the three supermarkets
• D) the day on which the data were collected

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Definitions:

Company's Liquidity

The ability of a company to meet its short-term financial obligations by quickly converting assets into cash without significant loss.

Gross Margin Ratio

A financial metric that measures a company's financial health by dividing its gross profit by net sales, indicating the percentage of sales revenue remaining after deducting the cost of goods sold.

Profitability

The ability of a business to generate earnings compared to its expenses and other costs incurred during a specific period.

Operating Cycle

The duration of time it takes for a company to buy inventory, sell it as finished goods, and collect cash from the sales.