The US Bureau of Labor Statistics (Www

question 115

Multiple Choice

The U.S. Bureau of Labor Statistics (www.bls.gov) released its Consumer Expenditures report in October 2008. Among its findings is that average annual household spending on food at home was $3,624. Suppose a random sample of 137 households in Detroit was taken to determine whether the average annual expenditure on food at home was less for consumer units in Detroit than in the nation as a whole. The sample results are in the file Detroit Eats. Based on the sample results, can it be concluded at the α = 0.02 level of significance that average consumer-unit spending for food at home in Detroit is less than the national average?

• A) Because t = -13.2314 is less than the critical t value of -1.4126, do not reject H0. The annual average consumer unit spending for food at home in Detroit is not less than the 2006 national
• Consumer unit average
• B) Because t = -13.2314 is less than the critical t value of -1.4126, reject H0. The annual average consumer unit spending for food at home in Detroit is less than the 2006 national
• Consumer unit average
• C) Because t = -15.7648 is less than the critical t value of -2.0736, do not reject H0. The annual average consumer unit spending for food at home in Detroit is not less than the 2006 national
• Consumer unit average.
• D) Because t = -15.7648 is less than the critical t value of -2.0736, reject H0. The annual average consumer unit spending for food at home in Detroit is less than the 2006 national
• Consumer unit average.

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Definitions:

Sale

The act of selling goods or services in exchange for money or other compensation.

Revenue

The total income generated by a company from its business activities, before any expenses are deducted.

Construction Contracts

Agreements between a contractor and client for the provision of construction services, detailing the project's scope, terms, and conditions.

Progress Payments

Partial payments made for work completed to date, common in long-term projects to provide cash flow to contractors or suppliers before the final product is delivered.