Examlex

Solved

At the Billy Goat Gruff Inn, Machines Are Set to Dispense

question 37

Essay

At the Billy Goat Gruff Inn, machines are set to dispense 600 ml of soda into every
customer's glass. Over time, however, the machine can get "out of control" and dispense too
much soda or too little. The machine needs adjustment if the mean amount dispensed is
different than 600 ml. At a randomly selected time each clock hour, the owner dispenses and
checks a glass of soda and determines the actual volume of soda dispensed. One day the
volumes (in ml) of the dispensed soda were: 600.15,599.92,599.85,599.92,599.81,600.14,600.04,599.98600.15,599.92,599.85,599.92,599.81,600.14,600.04,599.98 Is there sufficient evidence to conclude that the dispensing machine needs adjustment?


Definitions:

Global Economy

The international network of economies and financial markets, encompassing all economic activity within and between nations.

Cash Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

MM

The Modigliani-Miller theorem, a foundational concept in corporate finance proposing that under certain conditions, the value of a firm is unaffected by how it is financed.

Firm's Stock

The capital raised by a corporation through the issuance and subscription of shares representing ownership interest in the company.

Related Questions