How Do You Determine Whether to Use the Z or T

question 59

Essay

How do you determine whether to use the z or t distribution in computing the margin of error, $E = z _ { \alpha / 2 } \cdot \frac { \sigma } { \sqrt { n } } \text { or } E = t _ { \alpha / 2 } \cdot \frac { s } { \sqrt { n } } ?$

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Definitions:

Actual Manufacturing Overhead Cost

The actual costs incurred for indirect manufacturing expenses, such as utilities, rent, and maintenance.

Year

A period of time consisting of 12 months or 365 days, used as a basic unit for measuring time in relation to the earth's orbit around the sun.

Cost of Goods Available for Sale

The total cost of inventory that a business has ready for sale, comprising both beginning inventory plus the cost of goods manufactured.

Overapplied

A situation where the allocated manufacturing overhead cost exceeds the actual manufacturing overhead costs incurred, resulting in an apparent surplus.