Use the Following to Answer the Question(s) Below

question 3

Multiple Choice

Use the following to answer the question(s) below.
Chris Columbus is responsible for controlling inventory levels for four types of sailboats sold by his company. Chris takes a sample of 48 boats sold over the past several months to determine if demand is the same for each type. His results are as follows:
Type of Boat Sales
Pirate's Revenge 15
Jolly Roger 11
Sails Delight 10
Cruiser Cove 12
-The correct null hypothesis to be tested is

• A) Type of boat and demand are related.
• B) The demand differs for each type of boat.
• C) The demand is the same for each type of boat.
• D) Type of boat and demand are related and the demand differs for each type of boat.
• E) Type of boat and demand are related and the demand is the same for each type of boat.

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Definitions:

Consolidation Adjustments

Adjustments made to eliminate transactions between entities within a consolidated group, ensuring that the consolidated financial statements present a group as a single economic entity.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as a single entity.

Double Counting

The error of including the same item or financial transaction more than once in a calculation or analysis, leading to inaccurate results.

Fair Value Option

An accounting strategy allowing companies to choose to value and report certain assets and liabilities at fair market prices.