Assume That You Are Testing the Difference in the Means

question 22

Multiple Choice

Assume that you are testing the difference in the means of two independent populations at the 0.05 level of significance. The null hypothesis is: H0 : μA - μβ ≥ 0 and you have found the test statistic is What should you conclude?

• A) The mean of pop. A is greater than the mean of pop. B because p-value < α.
• B) The mean of pop. A is greater than the mean of pop. B because p-value > α.
• C) There is no significant difference in the two means because p-value > α.
• D) The mean of pop. B is greater than the mean of pop. A because p-value < α.

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Definitions:

Absorption Costing

An accounting technique that assigns the total manufacturing costs, including direct materials, direct labor, and both kinds of manufacturing overhead (fixed and variable), to a product’s cost.

Gross Margin

The difference between sales revenue and cost of goods sold, expressed as a percentage of sales revenue, indicating the financial health and profitability of a business.

Absorption Costing

An approach to costing that encompasses all costs associated with manufacturing, including direct materials, direct labor, as well as variable and fixed manufacturing overheads, in the product cost.

Absorption Costing

A strategy in accounting practice that aggregates all manufacturing expenses, from direct materials and labor to variable and fixed overheads, into the determination of a product's cost.