An Associate at a Large Home Improvement Store Claims That

question 30

Multiple Choice

An associate at a large home improvement store claims that she can build a composite 12 × 20 ft deck for an average cost of $7200.We sample eight decks built by this associate and find that the average cost was $8215.22 with a standard deviation of $711.16.Does it appear from this sample that the claim of $7200 is not accurate (either too high or too low) ? State the critical value (CV) , test statistic (TS) , and decision from the test.(Use α = 0.05.)

• A) CV = 2.3646; TS = 1.43; fail to reject her claim
• B) CV = 1.8946; TS = 1.43; fail to reject her claim
• C) CV = 1.8946; TS = 4.04; reject her claim
• D) CV = 2.3646; TS = 4.04; reject her claim

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Definitions:

Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

Expected Return

A financial term used to calculate the average amount of profit or loss an investment is predicted to generate.

Economy Booms

A period of rapid economic growth and expansion characterized by high employment, increasing consumer confidence, and elevated business production.

Expected Rate

The anticipated return on an investment, often used to estimate the future value of investments or to guide investment decisions.