An Entrepreneur Is Considering the Purchase of a Coin-Operated Laundry

question 189

Multiple Choice

An entrepreneur is considering the purchase of a coin-operated laundry. The current owner claims that over the past 5 years, the mean daily revenue was $675 with a population standard deviation
Of $75. A sample of 30 days reveals a daily mean revenue of $625. If you were to test the null
Hypothesis that the daily mean revenue was $675, which test would you use?

• A) Z-test of a population mean
• B) Z-test of a population proportion
• C) t-test of population mean
• D) t-test of a population proportion

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Definitions:

FOB Shipping Point

A term indicating that the buyer takes ownership and pays for transportation costs once the goods leave the seller’s premises.

Inventory Cost

The total cost associated with purchasing and producing the inventory a business holds, including the costs of materials, labor, and overhead.

Perpetual Inventory System

An accounting method where inventory quantities and cost of goods sold are continuously updated with each sale or purchase transaction.

Merchandise On Hand

The inventory of goods that a company currently has available for sale.