The Customer Help Center in Your Company Receives Calls from Customers

question 66

Multiple Choice

The customer help center in your company receives calls from customers who need help with some of the customized software solutions your company provides.Your company claims that the average waiting time is 7 minutes at the busiest time,from 8 a.m.to 10 a.m.,Monday through Thursday.One of your main clients has recently complained that every time she calls during the busy hours,the waiting time exceeds 7 minutes.You conduct a statistical study to determine the average waiting time with a sample of 35 calls for which you obtain an average waiting time of 8.15 minutes.If the population standard deviation is known to be 4.2 minutes,and α = 0.05,the appropriate decision is:

• A) increase the sample size
• B) reduce the sample size
• C) fail to reject the 7-minute average waiting time claim
• D) maintain status quo
• E) reject the 7-minute claim

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Definitions:

Periodic Inventory System

An inventory accounting system where physical inventory counts are conducted at specific intervals to determine the cost of goods sold.

First-In, First-Out

A rephrased definition of FIFO; it's a method of stock valuation assuming that the oldest inventory items are used or sold first.

Lower of Cost or Market

Accounting principle where inventory is stated at the lower value between its original cost and current market price.

Inventory Item

A specific product or material that a company holds in stock with the intent to sell or use in the production process.