A Fitness Club Claims That the Average Age of Its

question 33

Essay

A fitness club claims that the average age of its members is 42.Assume that the ages are normally distributed.You believe that the average age is less than 42,therefore,you ask the ages of a few of the fitness club's members and get the following values: 40,55,50,33,38,35,30,and 45.Do you have any reason at the 10 per cent level of significance to think the fitness club's claim is incorrect?

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Definitions:

Net Method

An accounting method that records purchases or sales of goods and services after deducting any discounts, returning the net amount.

Credit Terms

The payment conditions set by a seller for the buyer, including the period allowed for payment and any cash discount for early payment.

Inventory Returns Estimated

An approximation of the value or volume of goods that will be returned from customers back to the inventory.

Sales Refund Payable

A liability account that holds funds reserved for future refunds to customers for returned goods.