The Mean Annual Incomes of Certified Welders Are Normally Distributed

question 11

Multiple Choice

The mean annual incomes of certified welders are normally distributed with the 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. A sample of 100 welders is taken and the mean annual income of the sample is $50,350. If the level of significance is 0.05,what conclusion should be drawn?

• A)Do not reject the null hypothesis as the test statistic is less than the critical value of z.
• B)Do not reject the null hypothesis as the test statistic is less than the critical value of t.
• C)Reject the null hypothesis as the test statistic is greater than the critical value of t.
• D)Reject the null hypothesis as the test statistic is greater than the critical value of z.

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Definitions:

Straight-Line Method

A method of calculating depreciation by evenly allocating the cost of an asset minus its salvage value over its estimated useful life.

Office Furniture

Items and fixtures used in an office setting for the purpose of work, including desks, chairs, and file cabinets.

Revised Annual Depreciation

The updated calculation of depreciation expense per year after making any necessary adjustments to asset value or useful life.

Depreciable Cost

The expense of a fixed asset reduced by its salvage value, indicating the entire sum that can be depreciated throughout the asset's lifespan.