Use the Runs Test to Determine Whether the Given Sequence $\begin{array} { l l l l l l l l l l } 94 & 96 & 97 & 99 & 95 & 90 & 97 & 98 & 100 & 100 \end{array}$

question 101

Essay

Use the runs test to determine whether the given sequence is random. Use a significance level
of 0.05. The sequence of numbers below represents the maximum temperature (in degrees
Fahrenheit)in July in one U.S. town for 30 consecutive years. Test the sequence for
randomness above and below the median. $\begin{array} { l l l l l l l l l l } 94 & 96 & 97 & 99 & 95 & 90 & 97 & 98 & 100 & 100 \end{array}$
$\begin{array} { l l l l l l l l l l } 92 & 95 & 98 & 99 & 102 & 97 & 97 & 101 & 99 & 100 \end{array}$
$\begin{array} { l l l l l l l l l l } 98 & 95 & 93 & 99 & 101 & 99 & 101 & 100 & 99 & 103 \end{array}$

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Definitions:

Absorption Costing

An accounting method where all manufacturing costs, including both fixed and variable costs, are allocated to produced units.

Direct Labor Cost

The total cost of wages paid to workers directly involved in manufacturing a product or delivering a service.

Fixed Manufacturing Overhead

The total of all manufacturing costs that do not vary with the level of production, such as rent, salaries, and insurance.

Reconciliation

The process of ensuring that two sets of records or financial accounts are in agreement, often used in accounting to match transactions.