A Corporate Analyst Is Testing Whether Mean Inventory Turnover Has

question 38

Multiple Choice

A corporate analyst is testing whether mean inventory turnover has increased. Inventory turnover in six randomly chosen product distribution centers (PDCs) is shown. $\begin{array} { |l | c | c | } \hline & { \text { This Year } } & \text { Last Year } \\\hline \text { PDC 1 } & 5.1 & 4.1 \\\hline \text { PDC 2 } & 3.9 & 2.9 \\\hline \text { PDC 3 } & 4.8 & 2.8 \\\hline \text { PDC 4 } & 3.4 & 3.4 \\\hline \text { PDC 5 } & 4.6 & 2.6 \\\hline \text { PDC 6 } & 7.7 & 4.7 \\\hline\end{array}$ The value of the test statistic is:

• A)3.798
• B)2.449
• C)1.225
• D)3.503

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Definitions:

Revenue Accounts

Accounts that record the income a company earns from its normal business activities.

Expense Accounts

Accounts that track the costs of operating a business, such as rent, utilities, and salaries.

Identification Codes

Unique codes used to identify and track items or information in various systems.

Balances

The amounts of money in accounts, whether they are liabilities, assets, or equity, at a specific point in time.