In 1990, the Average Duration of Long-Distance Telephone Calls Originating $\mathrm { H } _ { 0 } : \mu \neq 8.5$

question 8

Multiple Choice

In 1990, the average duration of long-distance telephone calls originating in one town was 8.5 minutes. A long-distance telephone company wants to perform a hypothesis test to determine whether the average duration of long-distance phone calls has changed from the 1990 mean of 8.5 minutes.

• A) \(\mathrm { H } _ { 0 } : \mu \neq 8.5\) minutes
• \(\mathrm { H } _ { \mathrm { a } } : \mu = 8.5\) minutes
• B) \(\mathrm { H } _ { 0 } : \mu = 8.5\) minutes
• \(\mathrm { H } _ { \mathrm { a } } : \mu > 8.5\) minutes
• C) \(\mathrm { H } _ { 0 } : \mu = 8.5\) minutes
• \(\mathrm { H } _ { \mathrm { a } } : \mu \neq 8.5\) minutes
• D) \(\mathrm { H } _ { 0 } : \mu = 8.5\) minutes
• \(\mathrm { H } _ { \mathrm { a } } : \mu < 8.5\) minutes

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Definitions:

Extend Its Useful Life

The process of prolonging the period over which an asset can productively be used, often through maintenance or improvements.

Functional Depreciation

The decrease in the usefulness or value of an asset due to advancements in technology or changes in market demands, rather than physical wear and tear.

Fixed Asset

Long-term tangible assets that a company uses in its operations to generate income, such as buildings, machinery, and vehicles, which are not typically sold in the course of business.

Interest on Construction Loan

The interest that accrues on a loan taken out to finance the construction of a building or other project, traditionally capitalized and added to the project's cost base.