TABLE 12-16 A Filling Machine at a Local Soft Drinks Company Is

question 185

True/False

TABLE 12-16
A filling machine at a local soft drinks company is calibrated to fill the cans at a mean amount of 12 fluid ounces and a standard deviation of 0.5 ounces. The company wants to test whether the standard deviation of the amount filled by the machine is 0.5 ounces. A random sample of 15 cans filled by the machine reveals a standard deviation of 0.67 ounces.
-Referring to Table 12-16, the p-value of the test is somewhere between 5% and 10%.

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Definitions:

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction.

Reliability

In accounting, it refers to the accuracy and consistency of financial reporting, ensuring that information faithfully represents the entity's financial condition.

Materiality Constraint

An accounting principle that permits ignoring rules following the generally accepted accounting principles (GAAP) if the impact of adhering to them is so insignificant that it would not affect the decision-making process of someone reading the financial statements.

Unusual Gain

Gains that are not expected to recur frequently or regularly, arising from events not considered part of the ordinary activities of a business.