Instruction 9-3 An Appliance Manufacturer Claims to Have Developed a Compact Microwave

question 13

Multiple Choice

Instruction 9-3
An appliance manufacturer claims to have developed a compact microwave oven that consumes a mean of no more than 250 W. From previous studies, it is believed that power consumption for microwave ovens is normally distributed with a population standard deviation of 15 W. A consumer group has decided to try to discover if the claim appears true. They take a sample of 20 microwave ovens and find that they consume a mean of 257.3 W.
-Referring to Instruction 9-3,the parameter of interest is

• A) the mean power consumption of the 20 microwave ovens.
• B) 257.3.
• C) the mean power consumption of all such microwave ovens.
• D) 250.

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Definitions:

Containers Refurbished

Refers to the process of repairing, cleaning, and restoring containers to a like-new condition for reuse.

Activity Variance

The deviation between the budgeted amount of activity and the actual amount of activity during a specific period.

Budgeting

A financial planning process for projecting revenues, expenses, and savings goals for a specific period of time.

Net Operating Income

The total profit of a business after subtracting operating expenses but before deducting taxes and interest.