After Completing Sales Training for a Large Company, It Is

question 145

Multiple Choice

After completing sales training for a large company, it is expected that the salesperson will generate a sale on at least 15 percent of the calls he or she makes. To make sure that the sales training process is working, a random sample of n = 400 sales calls made by sales representatives who have completed the training have been selected and the null hypothesis is to be tested at 0.05 alpha level. Suppose that a sale is made on 36 of the calls. Based on these sample data, which of the following is true?

• A) The null hypothesis should be rejected since the test statistic falls in the lower tail rejection region.
• B) The null hypothesis is supported since the sample results do not fall in the rejection region.
• C) There is insufficient evidence to reject the null hypothesis and the sample proportion is different from the hypothesized proportion due to sampling error.
• D) It is possible that a Type II statistical error has been committed.

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Definitions:

FIFO Method

An inventory valuation method that assumes items purchased first are sold first, affecting the costs of goods sold and ending inventory.

Conversion Activity

The process of converting raw materials into finished goods through labor and manufacturing operations.

Equivalent Units

A concept used in process costing that converts partially completed units into a smaller number of fully completed units to simplify cost calculations.

FIFO Method

An accounting method where the first items added to inventory are the first ones to be sold or used.