The Mean Annual Income of Certified Welders Is Normally Distributed

question 19

Multiple Choice

The mean annual income of certified welders is normally distributed with a mean of $50,000 and a population standard deviation of $2,000. The ship building association wishes to find out whether their welders earn more or less than $50,000 annually. The alternate hypothesis is that the mean is not $50,000. If the level of significance is 0.10,what is the decision rule?

• A)Do not reject the null hypothesis if computed z lies between −1.645 and +1.645; otherwise,reject it.
• B)Do not reject the null hypothesis if computed z is greater than 1.645; otherwise,reject it.
• C)Do not reject the null hypothesis if computed z lies between −1.960 and +1.960; otherwise,reject it.
• D)Reject the null hypothesis if computed z is below −1.960; otherwise,reject it.

---

Definitions:

Direct Manufacturing Cost

Costs that are directly attributable to the manufacturing process, including direct labor and direct materials cost.

Indirect Manufacturing Cost

Costs associated with manufacturing that cannot be directly tied to a specific product, such as maintenance and utilities.

Financial Reporting

The process and the result of providing financial information to company stakeholders to make informed decisions.

Product Costs

Costs associated directly with the production of goods, including direct material, direct labor, and manufacturing overhead.