A Company Sells Two Products with Information as Follows Products Are Made by Machine

question 155

True/False

A company sells two products with information as follows:
$$\begin{array} { | l | r | r | } \hline & \text { A } & \text { B } \\\hline \text { Sales price per unit } & \$ 15 & \$ 21 \\\hline \text { Variable cost per unit } & \$ 4 & \$ 13 \\\hline\end{array}$$ Products are made by machine.Four units of product A can be made with three machine hours and five units of product B can be made with 0.7 machine hour.If there are no constraints on production or sales of either product,then the company should emphasize sales of product B.

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Definitions:

Standard Error

A measure of the statistical accuracy of an estimate, indicating how much the sample mean is expected to vary from the true population mean.

Mean

The average of a set of numbers, calculated by dividing the sum of all values by the count of values, and used as a measure of central tendency.

Z-statistic

A type of standard score that represents the distance in standard deviations a data point is from the mean, used in significance testing.

Two-tailed Test

A statistical test that considers both directions of a possible effect, testing for the possibility of an effect in two opposite directions.