Lube-Tech Is a Major Chain Whose Primary Business Is Performing

question 147

True/False

Lube-Tech is a major chain whose primary business is performing lube and oil changes for passenger vehicles. The national operations manager has stated in an industry newsletter that the mean number of miles between oil changes for all passenger cars exceeds 4,200 miles. To test this, an industry group has selected a random sample of 100 vehicles that have come into a lube shop and determined the number of miles since the last oil change and lube. The sample mean was 4,278 and the standard deviation was known to be 780 miles. Based on a significance level of 0.10, the critical value for the test is approximately z = 1.28.

Understand the components and purpose of the Consumer Price Index (CPI).

Compare and contrast CPI with GDP deflator.

Understand the effects of inflation and deflation on purchasing power and economic indicators.

Recognize how the Bureau of Labor Statistics measures and modifies the CPI.

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Definitions:

APC

Average Propensity to Consume, which is a measure of the percentage of income that is spent on goods and services rather than being saved.

Income

Funds regularly amassed from labor or capital invested.

APS

The abbreviation for "Aggregate Planning Strategy," a process in operations management to balance production and demand over a medium-term horizon; or it could refer to "Automatic Payment System," depending on context.

Income

The financial gain earned by an individual or business, typically measured on an annual basis, coming from work, investments, or other sources.