TABLE 9-3 An Appliance Manufacturer Claims to Have Developed a Compact Microwave

question 83

True/False

TABLE 9-3
An appliance manufacturer claims to have developed a compact microwave oven that consumes a mean of no more than 250 W. From previous studies, it is believed that power consumption for microwave ovens is normally distributed with a population standard deviation of 15 W. A consumer group has decided to try to discover if the claim appears true. They take a sample of 20 microwave ovens and find that they consume a mean of 257.3 W.
-Referring to Table 9-3, the consumer group can conclude that there is enough evidence that the manufacturer's claim is not true when allowing for a 5% probability of committing a Type I error.

---

Definitions:

Financial Position

A snapshot of what a company owns (assets) and owes (liabilities) at a particular point in time, showing its net worth.

Property

Assets or possessions owned by an individual or company, comprising both tangible items, like buildings and land, and intangible items like patents or copyrights.

Current Liability

A business's liabilities or amounts owed that must be settled with lenders within a twelve-month period.

Bonds Payable

Long-term liabilities represented by bonds that a company has issued, promising to repay the principal amount along with interest on specified dates.