A Researcher Is Investigating Which of Two Newly Developed Automobile $\mu _ { \mathrm { A } } - \mu \mathrm { B }$

question 65

Multiple Choice

A researcher is investigating which of two newly developed automobile engine oils is better at prolonging the life of an engine. Since there are a variety of automobile engines, 20 different engine types were randomly selected and were tested using each of the two engine oils. The number of
Hours of continuous use before engine breakdown was recorded for each engine oil. Suppose the following 95% confidence interval for $\mu _ { \mathrm { A } } - \mu \mathrm { B }$ was calculated: (100, 2500) . Which of the following inferences is correct?

• A) We are 95% confident that no significant differences exists in the mean number of hours of continuous use before breakdown of engines using oils A and B.
• B) We are 95% confident that the mean number of hours of continuous use of an engine using oil A is between 100 and 2500 hours.
• C) We are 95% confident that an engine using oil A has a higher mean number of hours of continuous use before breakdown than does an engine using oil B.
• D) We are 95% confident that an engine using oil B has a higher mean number of hours of continuous use before breakdown than does an engine using oil A.

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Definitions:

Reporting Unusual Items

The practice of separately reporting significant financial transactions or events that are not typical of the business's regular operations, to provide clarity in financial statements.

Income Statement

A financial report that summarizes a company's revenues, expenses, and profits/losses over a specific period of time.

Cash Flows

The inflows and outflows of cash and cash equivalents for a business, indicating its financial health.

Dividend Yield

A profitability ratio that measures the rate of return to common stockholders from cash dividends, computed by dividing the dividends per share of common stock by the market price per share of common stock.