Results of a Small Experiment Show That People Are Likely $p$

question 5

Multiple Choice

Results of a small experiment show that people are likely to offer a different amount for used exercise equipment when bargaining with a friend than when bargaining with a stranger. The $p$ -value from testing the difference in mean offers was equal to $0.00162$ . At an $\alpha = 0.05$ , the correct conclusion is to

• A) reject the null hypothesis.
• B) fail to reject the null hypothesis.
• C) conclude that there is no difference between bargaining with a stranger versus a friend.
• D) Both A and C.
• E) Both \(\mathrm { B }\) and \(\mathrm { C }\).

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Definitions:

Safety Stock

An additional quantity of an item kept in the inventory to reduce the risk of stockouts due to uncertainties in supply and demand.

Budgeted Income Statement

A financial statement that projects income, expenses, and net profit for a future period based on management's expectations and budgeting process.

Sales Budget

A detailed forecast of anticipated sales, often forming the basis for the company's production and marketing plans.

Merchandise Purchases Budget

A financial plan detailing the amount to be spent on acquiring inventory for sale during a certain period.