Suppose That Two Shipping Companies,A and B,each Decide to Estimate

question 171

Multiple Choice

Suppose that two shipping companies,A and B,each decide to estimate the annual percentage of shipments on which a $100 or greater claim for loss or damage was filed by sampling their records,and they report the data shown below. The owner of Company B is hoping to use these data to show that her company is superior to Company A with regard to the percentage of claims filed.Which test would be used to properly analyze the data in this experiment?

• A)The χ² test of a contingency table in a two-way contingency table.
• B)The χ² goodness-of-fitness test.
• C)The z-test for the difference in two proportions.
• D)The ANOVA F test for main treatment effect.

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Definitions:

Measure Of Activity

A quantifiable metric used to assess the level of operation or output, often tied to performance or productivity evaluation.

Variable Cost

Charges that fluctuate based on the quantity of output or level of sales.

Fixed Cost

Costs that remain unchanged regardless of the level of production or sales activity, such as rent, salaries, and insurance premiums.

Relevant Range

The span of activity or volume over which the assumptions about fixed and variable cost behaviors hold true for a specific business.