The Manager of a Local Specialty Store Is Concerned with a Possible

question 149

Multiple Choice

The manager of a local specialty store is concerned with a possible slowdown in payments by her customers. She measures the rate of payment in terms of the average number of days receivables are outstanding. Generally, the store has maintained an average of 50 days with a standard deviation of 10 days. A random sample of 25 accounts gives an average of 54 days outstanding with a standard deviation of 8 days. Assume the number of days is approximately normally distributed.
-The appropriate test statistic to test the hypotheses is _____.

• A)-2.00
• B)-2.50
• C)12.50
• D)2.50
• E)2.00

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Definitions:

Catalog Price

The price of an item as listed in a catalog, which may be subject to discounts based on various sales promotion strategies.

Perpetual Inventory System

An accounting method where goods are recorded as sold immediately through the use of computer systems, providing a continuous record of inventory.

Gross Price Method

An accounting practice where inventory and purchases are recorded at their full cost without deducting trade discounts.

Catalog Price

The listed price of items for sale as published in a catalog, not accounting for any discounts or promotions that might apply.