Golf Course Designer Roberto Langabeer Is Evaluating Two Sites,Palmetto Dunes $\sigma$

question 77

Multiple Choice

Golf course designer Roberto Langabeer is evaluating two sites,Palmetto Dunes and Ocean Greens,for his next golf course. He wants to prove that Palmetto Dunes residents (population 1) play golf more often than Ocean Greens residents (population 2) . Roberto commissions a market survey to test this hypothesis.The market researcher used a random sample of 64 individuals from each suburb,and reported the following: ₁ = 15 times per month and ₂ = 14 times per month. Assume that $\sigma$ ₁ = 2 and $\sigma$ ₂ = 3. With $\alpha$ = .01,the appropriate decision is _________________.

• A) reject the null hypothesis \(\sigma\)₁² < \(\sigma\)₂²
• B) accept the alternate hypothesis \(\mu\)₁- \(\mu\)₂ >0
• C) reject the alternate hypothesis n₁ = n₂ = 64
• D) fail to reject the null hypothesis \(\mu\)₁ - \(\mu\)₂ = 0
• E) do nothing

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Definitions:

Variable Overhead

The costs that fluctuate with the level of production or business activity, such as utilities or materials.

Variable Costing

A pricing approach that incorporates only those production expenses that vary—such as direct materials, direct labor, and variable manufacturing overhead—into the cost of products.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of product.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding production costs but including items like rent, utilities, and payroll.