A Recent Survey Indicated That the Average Amount Spent for Breakfast

question 1

Multiple Choice

A recent survey indicated that the average amount spent for breakfast by business managers was $7.58,
with a standard deviation of $0.42. It was felt that breakfasts on the West Coast were higher than $7.58. A
sample of 81 business managers on the West Coast had an average breakfast cost of $7.65.
-Give the p-value for the data provided above.

• A) 0.4987
• B) 0.0084
• C) 0.1325
• D) 0.0668

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Definitions:

CVP Analysis

Cost-Volume-Profit Analysis, a method used in managerial accounting to understand the impact of varying levels of costs and volume on operating profit.

Variable Cost

Expenses that vary directly with the amount of products or services a company generates.

Fixed Costs

Costs that remain constant regardless of a company's level of activity, including expenses like rent, salaries, and insurance.

Profit

The financial gain made in a transaction or operation, calculated as the difference between revenue and expenses.