Identify the Null Hypothesis, Alternative Hypothesis, Test Statistic, P-Value, Conclusion

question 86

Essay

Identify the null hypothesis, alternative hypothesis, test statistic, P-value, conclusion about the null hypothesis, and final conclusion that addresses the original claim
-David wants to test a claim about a population mean. The population standard deviation is unknown, the sample is a simple random sample of size 20, and the population is normally distributed. In this case, the t-test should be used since ? is unknown. If David incorrectly uses the normal distribution instead of the t-distribution, will he obtain a P-value that is too big or too small? Explain your thinking. Will he be more likely or less likely to reject the null hypothesis than if had correctly used the t-distribution?

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Definitions:

Contribution Margin Ratio

The percentage of each sale that exceeds the variable costs of production.

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in neither profit nor loss.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the cushion a business has before it incurs a loss.

Operating Leverage

A measure of how sensitive net operating income is to a given percentage change in dollar sales.