Test Whether He Given Claim Is Supported or Not Supported $$\begin{array} { l l l l l } 518 & 548 & 561 & 523 & 536 \\499 & 538 & 557 & 528 & 563\end{array}$$

question 38

Multiple Choice

Test whether he given claim is supported or not supported using a 0.05 significance level. Assume that the sample has been randomly selected from a population with a normal distribution.
-In tests of a computer component, it is found that the mean time between failures is 520 hours. A modification is made which is supposed to increase the time between failures. Tests on a random sample of 10 modified components resulted in the following times (in hours) between failures.

$$\begin{array} { l l l l l } 518 & 548 & 561 & 523 & 536 \\499 & 538 & 557 & 528 & 563\end{array}$$
Use a significance level of 0.05 to test whether the claim that the mean time between failures is greater than 520 hours
Is supported or not supported.

• A)not supported
• B)supported

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Definitions:

Standard Costing

Standard Costing is an accounting method that utilizes standard costs for materials, labor, and overhead for the purpose of controlling costs and identifying variances.

Variable Overhead

Costs that fluctuate in total with changes in activity level, such as the cost of utilities or indirect materials, associated with production or services.

Labour Rate Variance

A financial metric that measures the difference between the actual cost of labor and its expected cost based on standard rates.

Performance Report

A detailed report comparing budgeted data to actual data.