The Waiting Times (In Minutes) of 28 Randomly Selected Customers

question 75

Essay

The waiting times (in minutes) of 28 randomly selected customers in a bank are given below. Use a significance
level of 0.05 to test the claim that the population median is equal to 5.3 minutes. $$\begin{array} { r r r r r r r } 8.2 & 8.0 & 10.5 & 3.8 & 6.4 & 5.3 & 7.8 \\2.9 & 6.0 & 7.7 & 6.1 & 5.9 & 1.2 & 10.4 \\7.3 & 6.9 & 5.8 & 5.1 & 6.2 & 3.1 & 5.8 \\11.7 & 4.5 & 6.5 & 9.8 & 7.4 & 2.3 & 7.8\end{array}$$

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Definitions:

Absorption Costing

A system of accounting that includes every manufacturing expense, from direct materials and labor to variable and fixed overheads, into the calculation of a product’s cost.

Variable Costing

A method of inventory costing that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold.

Absorption Costing

An accounting method that includes all direct costs and fixed and variable overhead costs in the cost of a product.

Net Income

The company's net income following the deduction of all expenditures and taxes from its total revenue.