A Random Sample of 30 Executives from Companies with Assets

question 80

Multiple Choice

A random sample of 30 executives from companies with assets over $1 million was selected and asked for their annual income and level of education. The ANOVA comparing the average income among three levels of education rejected the null hypothesis. The Mean Square Error (MSE) was 243.7. The following table summarized the results: When comparing the mean annual incomes for executives with a High School education or less and Undergraduate Degree, the 95% confidence interval shows an interval of 11.7 to 42.7 for the difference. This result indicates that

• A) There is no significant difference between the two incomes.
• B) The interval contains a difference of zero.
• C) Executives with an Undergraduate Degree earn significantly more than executives with a High School education or less.
• D) Executives with an Undergraduate Degree earn significantly less than executives with a High School education or less.

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Definitions:

Music Store Business

A commercial establishment that sells musical instruments, sheet music, and/or recorded music.

Gross Method

An accounting method for recording purchases at the invoice's full amount without deducting any cash discounts.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overheads, payroll, taxation, and interest.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals, rather than continuously.