A Car Dealer Who Sells Only Late-Model Luxury Cars Recently

question 105

Multiple Choice

A car dealer who sells only late-model luxury cars recently hired a new salesperson and believes that this salesperson is selling at lower markups. He knows that the long-run average markup in his lot is $5,600. He takes a random sample of 16 of the new salesperson's sales and finds an average markup of $5,000 and a standard deviation of $800. Assume the markups are normally distributed. What is the value of an appropriate test statistic for the car dealer to use to test his claim?

• A) t₁₅ = -3.00
• B) z = -3.00
• C) t₁₅ = -0.75
• D) z = -0.75

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Definitions:

Implied Agency

A type of agency relationship created by the actions of the parties involved, not by written agreement, where an agent is presumed to have authority to act on behalf of another.

Nonprogrammed Decision

A new, complex decision that requires a creative solution.

Programmed Decision

A simple, routine matter for which a manager has an established decision rule.

Nonprogrammed Decisions

Decisions made in response to unique, novel, or ill-structured situations that require creativity and judgment, as opposed to routine or standard procedures.