A Revenue Department Is Under Orders to Reduce the Time $H _ { 0 } : \mu = 5.7$

question 141

Multiple Choice

A revenue department is under orders to reduce the time small business owners spend filling out pension form ABC-5500. Previously the average time spent on the form was 5.7 hours. In order to test whether the time to fill out the form has been reduced, a sample of 86 small business owners who annually complete the form was randomly chosen, and their completion times recorded. The mean completion time for ABC-5500 form was 5.5 hours with a standard deviation of 2.3 hours. In order to test that the time to complete the form has been reduced, state the appropriate null and alternative hypotheses.

• A) \(H _ { 0 } : \mu = 5.7\)
• \(H _ { \mathrm { a } } : \mu \neq 5.7\)
• B) \(H _ { 0 } : \mu = 5.7\)
• \(H _ { \mathrm { a } } : \mu > 5.7\)
• C) \(H _ { 0 } : \mu > 5.7\)
• \(H _ { \mathrm { a } } : \mu < 5.7\)
• D) \(\mathrm { H } _ { 0 } : \mu = 5.7\)
• \(H _ { \mathrm { a } } : \mu < 5.7\)

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Definitions:

Financial Position

A snapshot of the assets, liabilities, and equity of a company at a specific point in time.

Net Increase

The difference between the current period's figure and the previous period's figure when the current period's figure is larger.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Operating Activities

Business activities directly related to the production and delivery of goods and services, reflecting the company's core operations.