Exhibit 11-4

question 28

Multiple Choice

Exhibit 11-4.Consider the expected returns (in percent) from the two investment options.Beth claims that the variances of the returns for the two investments differ.Use the following data to arrive at the results. Refer to Exhibit 11-4.Test Beth's claim at the 5% significance level.What is the conclusion?

• A)p-value = 0.7127 > α = 0.05;Beth's claim is correct.
• B)p-value = 0.7127 > α = 0.05;Beth's claim is wrong.
• C)p-value = 0.7127 < α = 0.05;Beth's claim is wrong.
• D)p-value = 0.7127 < α = 0.05;Beth's claim is correct.

---

Definitions:

Direct Labor

The labor costs directly tied to the production of goods or services.

Direct Materials

Raw materials that are directly incorporated into a finished product and can be directly traced to that product.

Traditional Format Income Statements

A type of financial statement that presents the revenues, expenses, and profits or losses of a company over a specific period, formatted in a conventional manner.

Factory Supervisor

An individual responsible for overseeing the operations and workers in a factory, ensuring production targets and quality standards are met.