Elwin Osbourne, CIO at GFS, Inc

question 59

Multiple Choice

Elwin Osbourne, CIO at GFS, Inc., suspects that at least 25% of email messages sent by GFS employees are not business related.A random sample of 300 email messages was selected to test this hypothesis at the 0.01 level of significance.Fifty-four of the messages were not business related.The appropriate decision is __.

• A)increase the sample size
• B)gather more data
• C)reject the null hypothesis
• D)do not reject the null hypothesis
• E)maintain status quo

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Definitions:

Tax Treatment

Refers to the method or rules applied in determining how an item or situation is taxed, affecting the financial outcome.

Rental Income

Income received from renting out property, such as houses or apartments, which is subject to tax.

Gross Income

The total income from all sources before any deductions or taxes are applied.

Net Income

The total earnings of a person or company after all expenses and taxes have been subtracted from total revenue.