The Following Are the Ratings (0 to 4) Given by 12

question 26

Multiple Choice

The following are the ratings (0 to 4) given by 12 individuals for two possible new flavors of soft drinks. Wilcoxon rank-sum is to be used. At the 0.05 level of significance, what is the decision?

• A) Fail to reject null hypothesis; critical value is ±1.65.
• B) Fail to reject null hypothesis; critical value is ±1.96.
• C) Reject null hypothesis; critical value is 0.1732.
• D) Reject null hypothesis; critical value is 0.3464.

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Definitions:

Retail Method

An inventory valuation method used in the retail industry, estimating inventory cost by applying a cost to retail price ratio.

Estimated Cost

An approximation of the cost to produce a product, start a project, or execute a plan, often used in budgeting and planning.

Gross Profit Method

An accounting technique used to estimate inventory levels and cost of goods sold, calculated as sales minus the cost of goods sold.

Estimated Gross Profit Rate

A projected figure that calculates the percentage of gross profit to sales, used for analyzing a company's financial health.