Assuming Unequal Variances in a T-Test for a Zero Difference

question 16

Multiple Choice

Assuming unequal variances in a t-test for a zero difference of two means, we would:

• A)sum the degrees of freedom for each sample.
• B)use the larger degrees of freedom for simplicity.
• C)use a complicated formula for the degrees of freedom.
• D)use a z-test to be conservative in the calculation.

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Definitions:

Contribution Margin

The amount remaining from sales revenues after all variable expenses are paid, contributing towards covering fixed costs and profit.

Discontinue

To stop making or providing a product or service, often as a strategic decision by a company.

Sunk Cost

Expenses that have already been incurred and cannot be recovered or altered, which should not affect future business decisions.

Materials Costs

The expense incurred by acquiring raw materials necessary for producing goods, excluding indirect materials like maintenance supplies.