A Manufacturer of Flash Drives for Data Storage Operates a Production

question 90

Multiple Choice

A manufacturer of flash drives for data storage operates a production facility that runs on three 8-hour shifts per day. The following contingency table shows the number of flash drives that were defective and not defective from each shift. The test statistic for this test of independence is ________.

• A) 2.125
• B) 1.225
• C) 2.152
• D) 2.521

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Definitions:

Net Sales

The revenue a company earns from sales after subtracting returns, allowances for damaged or missing products, and discounts.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that is expected to be uncollectible.

Percentage of Credit Sales Method

An accounting method used to estimate bad debt expense by applying a fixed percentage to the total credit sales of a period.

Credit Sales

Sales made by a business on credit, where payment is collected at a later date.