Suppose We Want to Test H0 : μ ≥ 30

question 171

Multiple Choice

Suppose we want to test H0 : μ ≥ 30 versus H1 : μ < 30. Which of the following possible sample results based on a sample of size 36 gives the strongest evidence to reject H0 in favor of H1?

Calculate the pro forma net income based on projected sales increases.

Understand the relationship between dividend payout ratios and additions to retained earnings.

Determine the required increase in fixed assets due to projected sales increases.

Calculate the external financing needed (EFN) based on sales projections and financing conditions.

---

Definitions:

Identical Costs

Refers to costs that are the same across different products, services, or processes.

X-Inefficiency

A situation in which a firm fails to utilize its resources efficiently because of a lack of competitive pressure.

Average Total Costs

The total cost of production divided by the quantity produced, representing the per-unit cost of producing a good or service.

Economies Of Scale

Operational scale increases lead to cost efficiencies for businesses, prominently reflecting in reduced production costs per unit as the amount of output grows.