Solve the Problem

question 26

Multiple Choice

Solve the problem. Round the standard score to the nearest tenth before using the z-score tables. Express your answer as
a percent rounded to hundredths of a percent.
-A study of the amount of time it takes a mechanic to rebuild the transmission for a 1992 Chevrolet Cavalier shows that the mean is 8.4 hours and the standard deviation is 1.77 hours. Assume that a random sample of 40 mechanics is selected and the mean rebuild time of the sample is computed. Assuming the rebuilding times are normally distributed, what percentage of sample means are greater than 8.0 hours?

• A)91.92%
• B)94.52%
• C)5.48%
• D)8.08%

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Acid-Test Ratio

A stringent indicator of whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.

Current Ratio

A financial metric assessing a firm's capacity to settle short-term debts using its existing assets.

Liquidity Ratios

Liquidity ratios are financial metrics used to assess a company's ability to meet its short-term obligations by comparing its liquid assets to its current liabilities.