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

question 134

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 appropriate hypotheses to determine if the manufacturer's claim appears reasonable are

• A) H₀: μ = 250 versus H₁: μ ≠ 250.
• B) H₀: μ ≤ 250 versus H₁: μ > 250.
• C) H₀: μ ≥ 250 versus H₁: μ < 250.
• D) H₀: μ ≥ 257.3 versus H₁: μ < 257.3.

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Definitions:

Predetermined Overhead Rate

A rate calculated by dividing estimated overhead costs by an allocation base, used to allocate overhead to products or services.

Direct Labour-Hours

The amount of time dedicated by employees for the manufacture of products, directly impacting production costs and efficiency.

Overhead Applied

Overhead applied refers to the allocation of overhead costs to specific jobs or production units based on a predetermined rate or basis.

Job-order Costing System

A costing method that assigns costs to specific batches or lots of products, often tailor-made for customers.