A Company Makes a Device That Can Be Fitted to Automobile

question 75

Essay

A company makes a device that can be fitted to automobile engines to improve the mileage.The company claims that if the device is installed,owners will observe a mean increase of more than 3.0 mpg.Assuming that the population standard deviation of increase is known to be 0.75 mpg,and a sample of size 64 cars is selected with an = 3.25 mpg,use the p-value approach to test the null hypothesis using a significance level of 0.05.

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Definitions:

Acid Test Ratio

A liquidity metric that measures a company's capability to cover short-term liabilities with assets easily convertible to cash.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Net Sales

Net sales is the revenue a company generates from its sales of goods or services after deducting returns, allowances for damaged or missing goods, and discounts.

Ending Inventory

The total value of goods available for sale at the end of an accounting period.