A Large University Is Interested in Learning About the Average

question 24

Multiple Choice

A large university is interested in learning about the average time it takes students to drive to campus. The university sampled 238 students and asked each to provide the amount of time they
Spent traveling to campus. This variable, travel time, was then used conduct a test of hypothesis.
The goal was to determine if the average travel time of all the universityʹs students differed from
20 minutes. Suppose the large-sample test statistic was calculated to be z = 2.14. Find the p-value
For this test of hypothesis.

• A)p = 0.4838
• B)p = 0.9838
• C)p = 0.0324
• D)p = 0.0162

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Definitions:

Work in Process Inventory

An account on the balance sheet that represents the cost of raw materials, labor, and overhead for products that are in production but not yet complete.

Equivalent Costs

The concept in cost accounting that represents the cost of materials, labor, and overheads in partially finished goods, expressed in terms of fully finished goods.

Conversion Cost

Conversion Cost refers to the combined costs of direct labor and manufacturing overheads incurred to convert raw materials into finished products.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale during the period.