To Follow Is Information About the Units Produced and Total

question 135

Multiple Choice

To follow is information about the units produced and total manufacturing costs for Snow Enterprises for the past six months. $$\begin{array} { | l | c | c | } \hline \text { Month } & \text { Number of units produced } & \text { Total manufacturing costs } \\\hline \text { January } & 7,940 & \$ 5,900 \\\hline \text { February } & 7,500 & \$ 5,460 \\\hline \text { March } & 6,400 & \$ 5,000 \\\hline \text { April } & 6,600 & \$ 5,500 \\\hline \text { May } & 4,740 & \$ 5,100 \\\hline \text { June } & 7,800 & \$ 5,840 \\\hline\end{array}$$
- Using the high-low method,what is the variable cost per unit?

• A)$0.74
• B)$0.25
• C)$1.08
• D)$4.00

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Definitions:

Rejection Region

In hypothesis testing, the range of values for which the null hypothesis is not considered plausible and is therefore rejected.

Null Hypothesis

A statement positing that no statistical significance exists in a set of observations, serving as the default assumption in hypothesis testing.

Rejection Region

The area in the probability distribution that, if the test statistic falls within, leads to the rejection of the null hypothesis.

P-value Method

A statistical approach that determines the significance of results by comparing the p-value to a predetermined level of significance, often determining if there is enough evidence to reject a null hypothesis.