What Is the Hypothesis Test of Cost Parameters

question 29

Multiple Choice

What is the hypothesis test of cost parameters?

• A)It is not tested by the t-statistic.
• B)It indicates whether the parameters are different from zero.
• C)It tells the t-value of the significance achieved.
• D)It ensures that the cost function is useable.

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Definitions:

Average Daily Float

The average amount of uncollected funds in a company's checking account, representing checks written against and deposited in the account but not yet cleared.

Collection Float

The time period between when a payment is made by a customer and when the funds become available in the company’s account.

Cheques

Paper instruments that instruct a bank to pay a specific amount of money from the check writer's account to the person or entity in whose name the cheque has been issued.