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

question 44

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. Using the 1% level of significance, the critical value is $\pm$ 2.58.
iii. The z-statistic is 3.40.

• 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:

Price Standard

A predetermined cost that companies use to measure the variance between the expected and actual cost.

Materials Price Standard

A predetermined cost per unit of material, used as a benchmark to assess the efficiency and cost-effectiveness of the purchasing and usage of materials in production.

Matrix Approach

A management technique used to handle the complexity of multiple projects or tasks by organizing them into a matrix structure, considering both function and product.

Variance Analysis

The process of analyzing the difference between planned and actual numbers in order to find discrepancies and their causes.