I If We Are Testing for the Difference Between Two

question 74

Multiple Choice

i. If we are testing for the difference between two population means, it is assumed that the sample
Observations from one population are independent of the sample observations from the other
Population.
ii. If we are testing for the difference between two population means, it is assumed that the two
Populations are approximately normal and have equal variances.
iii. The critical value of t for a two-tail test of the difference of two means, a level of significance of
0) 10 and sample sizes of seven and fifteen, is ±1.734.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated, based on the efficiency of operations.

Supplies Cost

Supplies cost refers to the expense incurred in purchasing office or production supplies that are necessary for day-to-day operations.

Variable Manufacturing Overhead

Costs in the manufacturing process that fluctuate with production volume, such as utilities and raw materials, which do not remain constant as production levels change.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected for the actual production achieved.