Suppose You Want to Test the Claim That $\mu _ { 1 } < \mu _ { 2 }$

question 101

Multiple Choice

Suppose you want to test the claim that $\mu _ { 1 } < \mu _ { 2 }$ Assume the two samples are random and independent. At a level of significance of α $\alpha$ = 0.05, when should you reject H₀?
Population statistics: $\sigma _ { 1 } = 2.9 \text { and } \sigma _ { 2 } = 2.8$ Sample statistics: $\overline { \mathrm { x } } 1 = 28.85 , \mathrm { n } _ { 1 } = 35 \text { and } \overline { \mathrm { x } } 2 = 31.4 , \mathrm { n } _ { 2 } = 42$

• A)Reject H₀ if the standardized test statistic is less than -1.645.
• B)Reject H₀ if the standardized test statistic is less than -1.96.
• C)Reject H₀ if the standardized test statistic is less than -2.33.
• D)Reject H₀ if the standardized test statistic is less than -2.575.

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Definitions:

Depreciation

The method of allocating the cost of a tangible asset over its useful life.

Fixed Assets

Long-term tangible assets that are expected to be used in the operation of a business for a length of time, typically over one year.

Useful Life

The estimated duration of time that an asset is expected to be economically usable by the owner.

Prepaid Item

An expense paid in advance before receiving the benefit of the service or good.