Use the Following to Answer the Question(s) Below

question 38

Multiple Choice

Use the following to answer the question(s) below.
A manufacturer of cordless electric shavers sampled 13 from a day's production and found the mean time of continuous usage without recharging to be 410 minutes with a sample standard deviation of 30 minutes. We can assume that times are normally distributed. We wish to test if the true mean operating time without recharging is more than 400 minutes.
-The correct null and alternative hypotheses are

• A) H0: µ = 400; HA: µ < 400.
• B) H0: µ = 400; HA: µ > 400.
• C) H0: µ > 400; HA: µ = 400.
• D) H0: µ < 400; HA: µ = 400.
• E) H0: µ = 400; HA: µ ≠ 400.

---

Definitions:

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Net Operating Income

The income generated from normal business operations, calculated by deducting operating expenses from gross income.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.

Fixed Costs

Costs that remain constant in total regardless of changes in the level of the business activity or production volume.