A Simple Random Sample of Ten Firms Was Asked How

question 12

Essay

A simple random sample of ten firms was asked how much money (in thousands of dollars) they spent on employee training programs this year and how much they plan to spend on these programs next year. The data are shown below. $$\begin{array} { l r r r r r r r r r r } \text { Firm } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 \\\text { This year } & 25 & 31 & 12 & 15 & 21 & 36 & 18 & 5 & 9 & 17 \\\text { Next year } & 21 & 30 & 18 & 20 & 22 & 36 & 20 & 10 & 8 & 15\end{array}$$ Assume that the populations of amount spent on employee training programs are normally distributed.
a. Estimate with 95% confidence the mean difference.
b. Briefly explain what the interval estimate in part a. tells you.

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Definitions:

Cash Flows

The aggregate sum of cash entering and leaving a business, critically impacting its financial fluidity.

Financing Activities

Transactions and events that affect a company's long-term liabilities and equity, including issuing debt, repaying loans, and distributing dividends, as reported in the cash flow statement.

Investing Activities

Transactions that pertain to the acquisition and disposal of long-term assets and investments not included in cash equivalents.

Cash Flow Statement

A financial document summarizing the total cash received from a company's operational activities and external financial sources, alongside all expenditures on business operations and investments over a specific timeframe.