The Following Are the Ratings (0 to 4)given by 12

question 26

Multiple Choice

The following are the ratings (0 to 4) given by 12 individuals for two possible new flavors of soft drinks. Wilcoxon rank-sum is to be used. At the 0.05 level of significance,what is the decision?

• A)Fail to reject null hypothesis; critical value is ±1.65.
• B)Fail to reject null hypothesis; critical value is ±1.96.
• C)Reject null hypothesis; critical value is 0.1732.
• D)Reject null hypothesis; critical value is 0.3464.

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Definitions:

Absorption Costing

An accounting method that includes all direct and indirect manufacturing costs in the cost of a product.

Net Operating Income

The income a company makes from its main business activities before subtracting any costs for interest and taxes.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remains constant irrespective of the level of production, such as salaries of supervisors and rent for the factory building.

Variable Costing

A costing method that includes only variable production costs (costs that vary with output) in the cost of goods sold and excludes fixed overhead costs.