Maureen McIlvoy, Owner and CEO of a Mail Order Business $\neq$

question 32

Multiple Choice

Maureen McIlvoy, owner and CEO of a mail order business for wind surfing equipment and supplies, is reviewing the order filling operations at her warehouses. Her goal is 100% of orders shipped within 24 hours. In previous years, neither warehouse has achieved the goal, but the East Coast Warehouse has consistently out-performed the West Coast Warehouse. Her staff randomly selected 200 orders from the West Coast Warehouse (population 1) and 400 orders from the East Coast Warehouse (population 2) , and reports that 190 of the West Coast Orders were shipped within 24 hours, and the East Coast Warehouse shipped 372 orders within 24 hours. Maureen's alternative hypothesis is ___.

• A) π₁ - π₂ \(\neq\) 0
• B) \(\mu\)₁ - \(\mu\)₂ > 0
• C) π₁ - π₂ > 0
• D) \(\mu\)₁ - \(\mu\)₂ \(\neq\) 0
• E) \(\mu\)₁ - \(\mu\)₂ ≥ 0

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Definitions:

Contribution Margin Ratio

The proportion of revenue from each dollar of sales that goes toward covering fixed expenses and creating profit.

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, such as leases and insurance premiums.

Contribution Margin

The amount by which the sale of a product exceeds its variable costs, contributing towards covering fixed costs and generating profit.

Return On Investment (ROI)

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.