A Company Provides Portable Walkie-Talkies to Construction Crews $$\begin{array} { l l l l l l l l } 45 & 52 & 56 & 55 & 51 & 57 & 48 & 52\end{array}$$

question 27

Essay

A company provides portable walkie-talkies to construction crews. Their batteries last, on
average, 55 hours of continuous use. The purchasing manager receives a brochure
advertising a new brand of batteries with a lower price, but suspects that the lifetime of the
batteries may be shorter than the brand currently in use. To test this, 8 randomly selected
new brand batteries are installed in the same model radio. Here are the results for the
lifetime of the batteries (in hours): $$\begin{array} { l l l l l l l l } 45 & 52 & 56 & 55 & 51 & 57 & 48 & 52\end{array}$$ Is there sufficient evidence to conclude that the purchasing manager is correct in his
conjecture that the new brand has a shorter average lifetime?

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Definitions:

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity.

Variable Cost

Variable Cost refers to expenses that change directly and proportionally with the level of production or sales activity, such as raw materials and direct labor costs.

Fixed Costs

Expenses that remain constant regardless of the amount of goods produced or sold, including lease payments, wages, and premiums.

Operating Income

Operating Income, also known as operating profit, reflects the amount of profit realized from a business's operations, after deducting operating expenses like wages and cost of goods sold, but before interest and taxes.