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A company claims that the standard deviation in their delivery time is less than 5 days. A sample of 27 past customers is taken. The average delivery time in the sample was 14 days with a standard deviation of 4.5 days. At a 5% level of significance, test the company's claim.
Current Ratio
A liquidity ratio; current assets are divided by current liabilities to indicate a company’s ability to pay its short-term debt. This ratio does not provide as much certainty as the acid test ratio.
Current Assets
Assets that can be converted into cash or used within one year or the normal operating cycle of the business, whichever is longer.
Common-Size Statements
Financial statements that are expressed as a percentage of a certain figure, allowing for easier comparison across time periods and companies by standardizing the data.
Percentage Of Change
A mathematical calculation used to determine the percentage increase or decrease of a value over a period of time.
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