A Local Courier Service Advertises That Its Average Delivery Time

question 55

Multiple Choice

A local courier service advertises that its average delivery time is less than 6 hours for local deliveries. When testing the two hypotheses, H₀: μ ≥ 6 and H_A: μ < 6, μ stand for ________.

• A) the mean delivery time
• B) the standard deviation of the delivery time
• C) the number of deliveries that took less than 6 hours
• D) the proportion of deliveries that took less than 6 hours

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Definitions:

Gross Pay

The gross income of an employee, which is the sum of all earnings before deductions or taxes are applied.

Deductions

Expenses or amounts subtracted from gross income to reduce the taxable income.

FICA-OASDI

Refers to the Social Security portion of the Federal Insurance Contributions Act tax, covering both the Old Age, Survivors, and Disability Insurance.

Cumulative Earnings

The total amount of net income an entity has earned over its life, up to the current reporting date, not yet distributed to shareholders.