A Random Sample of 30 Executives from Companies with Assets

question 58

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 undergraduate and master's degrees or more,which of the following 95% confidence interval can be constructed?

• A)2.0 ± 2.056 * 6.52
• B)2.0 ± 3.182 * 6.52
• C)2.0 ± 2.052 * 42.46
• D)2.0 ± 3.182 * 42.46

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Definitions:

Variable Cost Per Unit

The cost that changes in proportion to changes in the level of output or activity.

Income From Operations

The profit realized from a business's ongoing core business operations, excluding deductions of interest and taxes.

Break-even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Variable Cost

Costs that vary directly with the level of production or output. These are often raw material and labor costs that increase or decrease with the volume of production.