A Manager of the Credit Department for an Oil Company

question 10

Multiple Choice

A manager of the credit department for an oil company would like to determine whether the mean
Monthly balance of credit card holders is equal to $75.An auditor selects a random sample of 100
Accounts and finds that the mean owed is $83.40 with a sample standard deviation of $23.65.If
You wanted to test whether the mean balance is different from $75 and decided to reject the null
Hypothesis, what conclusion could you reach?

• A) There is not evidence that the mean balance is $75.
• B) There is not evidence that the mean balance is not $75.
• C) There is evidence that the mean balance is $75.
• D) There is evidence that the mean balance is not $75.

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Definitions:

Variable Manufacturing Cost

Costs that fluctuate with the level of production output, such as raw materials and direct labor.

Fixed Manufacturing Cost

Overheads that do not change with the level of manufacturing output, including salaries of permanent staff and rent.

Annual Impact

The effect or influence that something has over the course of a year, often used in the context of financial, environmental, or social effects.

Net Operating Income

The total profit of a business after subtracting operating expenses but before deducting taxes and interest.