The Metropolitan Bus Company Claims That the Mean Waiting Time $\alpha$

question 14

Essay

The Metropolitan Bus Company claims that the mean waiting time for a bus during rush hour is less than 5
minutes. A random sample of 20 waiting times has a mean of 3.7 minutes with a standard deviation of 2.1
minutes. At α $\alpha$ = 0.01, test the bus companyʹs claim. Assume the distribution is normally distributed.

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Definitions:

Variable Expenses

Costs that change in proportion to the level of activity or volume of output produced.

Unit Fixed Expenses

These are expenses that do not change with the level of production or sales within a certain range and are calculated per unit of product.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a finished unit of product.

Variable Costing

A costing method that includes only variable costs—those that change with production volume—in product pricing and decision-making.