An Electronics Retailer Believes That,at Most,40% of Their Cell Phone

question 36

Multiple Choice

An electronics retailer believes that,at most,40% of their cell phone inventory was sold during November. The retailer surveyed 80 dealers and found that 38% of the inventory was sold. Since 38% is less than 40%,is this difference of 2 percentage points sampling error or a significant difference? Test at the 0.05 level. The computed z = −0.37.

• A)The 2% is a significant difference.
• B)We cannot determine if the 2% is a significant difference.
• C)There is not enough information to reach a conclusion.
• D)None of the other answers apply.

---

Definitions:

Horizontal Analysis

A financial analysis technique that evaluates trends over time by comparing line items in financial statements across successive periods.

Revenue Information

Data regarding the income generated from the sales of goods or services before any expenses are subtracted.

Accounting System

A set of processes and tools used by a business to track its financial information, including transactions, accounts payable, and receivable.

Time Period

A specific duration for which financial statements are prepared or during which a certain financial performance is evaluated.