Wax-Com Electronics Inc $$Z = \frac { 8.5 - 25 ( .5 ) } { \sqrt { ( .5 ) ( 1 - .5 ) ( 25 } } = \frac { - 4 } { 2.5 } = - 1.6$$

question 61

Multiple Choice

Wax-com Electronics Inc.claims that a certain circuit board has a median operating life of less than 20,000 hours.A random sample of 25 such circuit boards showed 8 circuit boards failing before 20,000 hours and 17 circuit boards failing after 20,000 hours.Assume the useful life of the circuit board is not normally distributed.At ? = .05,can it be concluded that the sample contradicts the company's claim? Assume the useful life of the circuit board is not normally distributed.

• A)Reject the null hypothesis.
• B)Do not reject the null hypothesis.
• \[Z = \frac { 8.5 - 25 ( .5 ) } { \sqrt { ( .5 ) ( 1 - .5 ) ( 25 } } = \frac { - 4 } { 2.5 } = - 1.6\]

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Definitions:

Equity Method

An accounting technique used by a parent company to record its investments in subsidiaries or affiliates based on the equity stake's pro-rata share of net assets rather than the historical cost of the investment.

Stockholders' Equity

The remaining value of a company's assets after liabilities are subtracted, indicating the stake held by shareholders.

Liabilities

Financial obligations or debts that an entity owes to external parties, which must be settled through the transfer of assets, provision of services, or other economic benefits.

Assets

Resources owned or controlled by a business, expected to produce economic value or future benefits.