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

---

Definitions:

Segmented Income Statement

An income statement broken down into parts or segments, typically showing revenues, expenses, and profits for individual units, products, or departments within an organization.

Contribution Format

A way of presenting income statements where costs are separated into variable and fixed, and contribution margin is highlighted.

Common Fixed Expenses

Costs that do not vary with the level of production or sales and are shared among different segments of a business.

Variable Expenses

Expenses that change in proportion to the amount of goods produced or the volume of sales, including labor and materials.