Examlex

Solved

A Gaming Control Board Claims That the Average Household Income

question 7

Essay

A gaming control board claims that the average household income of those people playing blackjack at casinos is at least $50,000.Assume that the distribution of household income of those people playing blackjack is normally distributed with a standard deviation of $7,559.Suppose that for a sample of 45 households,it is found that the average income was $48,326.Is the gaming control board incorrect in asserting that the average household income of blackjack players is at least $50,000? Use the 10 per cent significance level.


Definitions:

Note Payable

A written promise to pay a specified amount of money, usually with interest, at a future date; a form of debt.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual rate.

Accrued Interest

Interest that has accumulated over a period but has not yet been paid or received.

Adjusting Journal Entry

A journal entry made at the end of an accounting period to record unrecognized income or expenses to ensure that the financial statements comply with the accrual concept of accounting.

Related Questions