Use the Information Below to Answer the Following Questions Finished Goods Inventory at the End of September Is 2,000

question 17

Multiple Choice

Use the information below to answer the following questions.
Patiomaster Products manufactures patio furniture. The estimated numbers of sets to be sold for the last three months of 2015 is:
$\begin{array}{lr}\text { Month}&\text { Sales }\\\text { October } & 10,000 \\\text { November } & 7,000 \\\text { December } & 5,000 \\\text { Tanuary } & 6,000\end{array}$ Finished goods inventory at the end of September is 2,000 units. Finished goods inventory is set at 20 percent of next month's sales.
-Refer to the table above.What will be the amount of total production for October 2015?

• A) 9,400 units.
• B) 7,800 units.
• C) 9,600 units.
• D) 8,400 units.

---

Definitions:

Hypotheses Testing

A method of statistical inference used to decide whether there is enough evidence to reject a null hypothesis in favor of an alternative hypothesis.

Power of the Test

The probability of correctly rejecting a false null hypothesis in a statistical test.

Random Sample

A selection of individuals or items from a larger population or set in such a way that each has an equal chance of being included, ensuring the sample's representativeness of the whole.

Normal Population

A population with a data distribution that follows a normal curve, characterized by the bell shape.