Swift Is the Holding Company for Swift Transportation Co

question 60

Multiple Choice

Swift is the holding company for Swift Transportation Co., Inc., a truckload carrier headquartered in Phoenix, Arizona. Swift operates the largest truckload fleet in the United States. Before Swift switched to its current computer-based billing system, the average payment time from customers was approximately 40 days. Suppose before purchasing the present billing system, it performed a test by examining a random sample of 24 invoices to see if the system would reduce the average billing time. The sample indicates that the average payment time is 38.7 days. The company that created the billing system indicates that the system would reduce the average billing time to less than 40 days. Conduct a hypothesis test to determine if the new computer-based billing system would reduce the average billing time to less than 40 days. Assume the standard deviation is known to be 6 days. Use a significance level of 0.025.

• A) Since z = -0.423 > -1.96, we will not reject H0, there is not sufficient evidence to conclude that the new computer-based billing system would reduce the average billing time to less than 40 days.
• B) Since z = -1.0614 > -1.96, we will not reject H0, there is not sufficient evidence to conclude that the new computer-based billing system would reduce the average billing time to less than 40 days.
• C) z = -1.0231 > -1.96, we will reject H0, there is sufficient evidence to conclude that the new computer- based billing system would reduce the average billing time to less than 40 days.
• D) z = 0.341 > -1.96, we will reject H0, there is sufficient evidence to conclude that the new computer- based billing system would reduce the average billing time to less than 40 days.

Comprehend the ideal length for business writing paragraphs to maintain reader engagement.

Understand the importance of having support sentences that align with the topic sentence in a paragraph.

Recognize the use of passive and active voice in sentence construction and its impact on clarity and engagement.

Apply principles of organization in writing persuasive and bad-news messages.

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Definitions:

Inventory Ratio

A financial metric that indicates how many times a company's inventory is sold and then replaced over a specific period.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating efficiency in managing stock.

Days' Sales In Inventory

A measure of how efficiently a company turns its inventory into sales, calculated as inventory divided by daily sales.

Quick Ratio

An assessment of a firm's capacity to fulfill its immediate liabilities using its most convertible assets, excluding stock.