AAA Co Operates Distribution Centers in the Midwest

question 28

Short Answer

AAA Co. operates distribution centers in the Midwest. Three of their centers were recently audited to determine if they are in compliance with company standard billing procedures. According to the auditing firm, a billing had an equal probability of being from each of the three centers. A random sample of the audited billings had the following distribution.
Center 1: 385 billings
Center 2: 305 billings
Center 3: 210 billings
What is the critical value at α = .01 to test the null hypothesis (equal billings from each center)?

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Definitions:

Closing Fees

Charges and costs associated with the finalization of a real estate transaction or the closing of a loan.

Itemize Deductions

The process of listing allowable expenses that can be subtracted from adjusted gross income to reduce taxable income.

Property Taxes

Taxes paid by property owners, based on the assessed value of their property, to fund local public services.

Charitable Contributions

Donations or gifts made to qualified organizations, which may be deductible from an individual's income tax.