A 7,000-Seat Theater Is Interested in Determining Whether There Is

question 94

Multiple Choice

A 7,000-seat theater is interested in determining whether there is a difference in attendance between shows on Tuesday evening and those on Wednesday evening. A random sample of 25 weeks is collected for Tuesday a different sample of 25 weeks is collected for Wednesday. The mean attendance on Tuesday evening is calculated as 5,500, while the mean attendance on Wednesday evening is calculated as 5,850. The known population standard deviation for attendance on Tuesday evening is 550 and the known population standard deviation for attendance on Wednesday evening is 445. Let μ₁ be the population mean of Tuesday, μ₂ be the population mean of Wednesday, and μ_D be the mean difference for a matched-pairs sampling. What are the appropriate hypotheses to determine whether there is a difference, on average, in attendance between shows on Tuesday evening and Wednesday evening?

• A) H₀: µ_D ≥ 0, H_A: µ_D < 0
• B) H₀: µ_D = 0, H_A: µ_D ≠ 0
• C) H₀: µ₁ - µ₂ = 0, H_A: µ₁ - µ₂ ≠ 0
• D) H₀: µ₁ - µ₂ ≥ 0, H_A: µ₁ - µ₂ < 0

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Definitions:

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption.

Control Levels

The different stages or layers of management and supervision within an organization, designed to ensure policies and procedures are implemented effectively.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, leading to more accurate product costing.

Departmental Overhead Rate Method

The departmental overhead rate method allocates overhead costs to specific departments based on their respective operational metrics, helping in accurate product costing and profitability analysis.