A Recent Study Compared the Time Spent Together by Single

question 57

Multiple Choice

A recent study compared the time spent together by single and dual-earner couples. According to
The records kept during the study, the mean amount of time spent together watching TV among
Single-earner couples was 65 minutes per day, with a standard deviation of 15.5 minutes. For the
Dual-earner couples, the mean time was 48.4 and the standard deviation was 18.1. At a 0.01
Significance level, can we conclude that the single-earner couples on average spend more time
Watching TV together? There were 15 single-earner and 12 dual-earner couples studied. State the
Decision rule, the value of the test statistic, and your decision.

• A) Reject if t > 2.485, t = 2.01, single-earner couples spend more time watching TV together.
• B) Reject if t > 2.473, t = 1.95, insufficient evidence to say that single-earner couples spend more time watching TV together.
• C) Reject if t > 2.473, t = 2.57, single-earner couples spend more time watching TV together.
• D) Reject if t > 2.485, t = 2.57, insufficient evidence to say that single-earner couples spend more time watching TV together.
• E) Reject if t > 2.485, t = 2.52, single-earner couples spend more time watching TV together.

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Definitions:

External Financing

Funds raised from sources outside the company, including banks, investors, or public markets.

Operating Capacity

The maximum output or the level of service that a company can achieve with its current resources under normal conditions.

Dividend Payout Ratio

A financial metric that shows what percentage of a company's earnings are distributed to shareholders as dividends.

Additional Debt

Borrowing more funds in addition to existing debt, which can increase a company's leverage and financial risk.