A Shipping Company Believes There Is a Linear Association Between

question 100

Multiple Choice

A shipping company believes there is a linear association between the weight of packages shipped and the cost. The following table shows the weight (in pounds) and cost (in dollars) of the last seven packages shipped. Using the critical value approach and α = 0.10, the appropriate conclusion is ________.

• A) do not reject the null hypothesis; we can conclude weight and cost are correlated
• B) do not reject the null hypothesis; we cannot conclude weight and cost are correlated
• C) reject the null hypothesis; we cannot conclude weight and cost are correlated
• D) reject the null hypothesis; we can conclude weight and cost are correlated

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Definitions:

Job Order

A custom or production order that specifies the details for manufacturing a certain product or products for a customer.

Process Cost

The cost associated with a production process, allocated to products based on the process they go through rather than being directly traced to the product itself.

Conversion Costs

Conversion costs are the costs incurred to convert raw materials into finished products, including direct labor and manufacturing overhead.

Direct Labor

The labor costs directly associated with the manufacture of specific goods or services, which can be easily traced to a product.