To Compare the Effect of Weather on Sales of Soft $\neq$

question 92

Multiple Choice

To compare the effect of weather on sales of soft drinks, a soda manufacturer sampled two regions of the country with the following results. Is there a difference in sales between the 2 regions?
i. The alternate hypothesis is p_a - p_b $\neq$ 0.
ii. The pooled estimate of the population proportion is 0.36.
iii. Using the 1% level of significance, the critical value is $\pm$ 1.96.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (ii) is a correct statement but not (i) and (iii).

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Definitions:

Target Costing

A pricing strategy in which the selling price of a product is determined first, and then the manufacturing cost is managed to meet that selling price.

Mark-up

The amount added to the cost price of goods to cover overhead and profit.

Eliminate

The process of removing or getting rid of something.

Contribution Margin

The amount remaining from sales revenue after all variable costs have been deducted, indicating how much revenue is contributing to covering fixed costs and generating profit.