Video
the Owner of a Video Store Is Interested in Whether

question 74

Short Answer

Video
The owner of a video store is interested in whether or not there is a difference in the proportions of VCR movies rented by members and non-members among movie titles.Three movies are selected and each person who rents them is identified as a member or non-member.A total of 350 people rent these movies and the responses are: $$\begin{array}{l}\text { Mo vie }\\\begin{array} { | l | c c c | c | } \hline \text { Membershị } & \text { Witness } & \text { Rambo } & \text { Karate Kid } & \text { Total } \\\hline \text { Member } & 21 & 14 & 70 & 105 \\\text { Non-Member } & 79 & 86 & 80 & 245 \\\hline \text { |Total } & 100 & 100 & 150 & 350 \\\hline\end{array}\end{array}$$
-What is the critical value for a 0.01 significance level?

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders, based on a certain activity base.

Machine-Hours

A measure of production output or activity based on the number of hours machines are operated in the manufacturing process.

Job-Order Costing System

An accounting method used to accumulate and assign costs to custom or unique products or jobs.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to products or job orders, based on estimated costs and activity levels.