Exhibit 7-10: Choose the Appropriate Statistic for the Following Situations

question 24

Multiple Choice

Exhibit 7-10: Choose the appropriate statistic for the following situations.
-Refer to Exhibit 7-10.The proportion of teachers who take summer courses is greater than the proportion of businesspersons who take summer courses.

• A) Chi Square
• B) Multifactor Analysis of Variance
• C) t-test for dependent means
• D) t-test for independent means
• E) None of these are true.

---

Definitions:

Units

A measure of quantity, such as items or pieces, used in production and inventory contexts.

Mixed Cost

A cost composed of both fixed and variable components, changing in total with activity level but not proportionally.

True Variable Cost

Costs that vary exactly with the level of activity or production volume, including direct materials and some elements of manufacturing overhead.

Fixed Cost

Costs that do not vary with the level of output or sales, remaining constant regardless of the business activity level, such as rent and salaries.