The Owner of a Local Nightclub Has Recently Surveyed a Random

question 122

Multiple Choice

The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the club. She would now like to determine whether or not the mean age of her customers is greater than 30. If so, she plans to alter the entertainment to appeal to an older crowd. If not, no entertainment changes will be made. If she wants to have a level of significance at 0.01, what rejection region should she use?

• A) Reject H₀ if t < -2.3263.
• B) Reject H₀ if t < -2.5758.
• C) Reject H₀ if t > 2.3263.
• D) Reject H₀ if t > 2.5758.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, contributing to covering fixed costs and generating profit.

Machine Hours

A measure of production time, corresponding to the total hours that machines are in operation.

Controllable

Costs or factors that can be adjusted or influenced by the actions of a company or individual within a particular timeframe.

Direct Materials

Essential substances or components specifically allocated to the creation of a product, identifiable in the final product.