A Random Sample of 30 Executives from Companies with Assets

question 58

Multiple Choice

A random sample of 30 executives from companies with assets over $1 million was selected and
Asked for their annual income and level of education. The ANOVA comparing the average income
Among three levels of education rejected the null hypothesis. The Mean Square Error (MSE) was
243) 7. The following table summarized the results:
Based on the comparison between the mean annual incomes for executives with Undergraduate
And Master's Degree or more.

• A) a confidence interval shows that the mean annual incomes are not significantly different.
• B) the ANOVA results show that the mean annual incomes are significantly different.
• C) a confidence interval shows that the mean annual incomes are significantly different.
• D) the ANOVA results show that the mean annual incomes are not significantly different.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs and treats fixed manufacturing overhead as a period expense.

Production Levels

Production levels pertain to the quantity of goods or services produced over a specified period, directly influencing a company's inventory and supply chain.

Product Costs

Costs that are directly associated with the production of goods, including direct labor, direct materials, and manufacturing overhead.

Absorption Costing

A pricing approach that encompasses all costs associated with manufacturing—including direct materials, direct labor, and all manufacturing overheads, both variable and fixed, in a product's cost.