A Large Software Development Firm Recently Relocated Its Facilities

question 14

Multiple Choice

A large software development firm recently relocated its facilities.Top management is interested in fostering good relations with their new local community and has encouraged their professional employees to engage in local service activities.They believe that the firm's professionals volunteer an average of more than 15 hours per month.If this is not the case, they will institute an incentive program to increase community involvement.A random sample of 24 professionals yields a mean of 16.6 hours and a standard deviation of 2.22 hours.The P-value associated with the resulting test statistic is 0.0009.At ? = 0.05, which
Of the following is the correct conclusion?
I.We reject the null hypothesis.
II.We fail to reject the null hypothesis.
III.The firm shouldn't need to institute an incentive program because the evidence indicates
That professional employees volunteer an average of more than 15 hours per month in
Their local community.

• A)I only
• B)Both II and III
• C)Both I and III
• D)III only
• E)II only

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Definitions:

Financing Charge

An additional fee charged by a lender to a borrower for the use of borrowed funds, often expressed as an annual percentage rate.

Compensating Balance

A minimum account balance that a company agrees to maintain in a bank account to offset the cost of banking services provided.

Effective Rate

The actual interest rate earned or paid on an investment, loan, or other financial product, taking into account the compounding effect.

Implied Annual Cost

An estimation of the cost associated with an investment or loan, calculated on a yearly basis, including interest, fees, and other charges.