A Toy Storeowner Hypothesizes, at the 95% Level of Confidence

question 68

True/False

A toy storeowner hypothesizes, at the 95% level of confidence, that parents spend less than $100 on toys per visit to her store. A sample is taken and the hypothesis test shows a z value of -1.65. We accept the hypothesis:

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Definitions:

Initial Cost

The purchase price of a fixed asset plus all costs to obtain and ready it for use.

Cash Payback Method

A capital budgeting technique that calculates the time required to recoup the cost of an investment, based on the cash inflows generated by the investment.

Net Cash Inflows

The difference between all cash received and all cash payments over a period, reflecting the net change in cash position.

Fixed Asset

Long-term tangible assets, such as machinery, buildings, and land, used in the operation of a business that are not expected to be consumed or converted into cash within a year.