Records on a Fleet of Trucks Reveal That the Average

question 41

Multiple Choice

Records on a fleet of trucks reveal that the average life of a set of spark plugs is normally distributed with a mean of 35,600 kilometres. A manufacturer of spark plugs claims that its plugs have an average life in excess of 35,600 kilometres. The fleet owner purchased 18 sets and found that the sample average life was 37,700 kilometres, the sample standard deviation was 2415 kilometres and the computed t = 3.677.

• A) Based on these findings, there is enough evidence to accept the manufacturer's claim at the 0.05 level.
• B) Based on these findings, there is NOT enough evidence to accept the manufacturer's claim at the 0.05 level.
• C) Based on these findings, there is enough evidence to accept the manufacturer's claim at the 0.05 level, but NOT at the 0.01 level.
• D) Based on these findings, there is NOT enough evidence to accept the manufacturer's claim at the 0.01 level.
• E) Based on these findings, there in NOT enough evidence to accept the manufacturer's claim at either the 0.05 or the 0.01 level.

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Definitions:

Interest Payable

A liability account representing the amount of interest expense that has been incurred but not yet paid by the company.

Current Liability

A liability that is expected to be paid off within a year's time or within the normal operating cycle of a business.

Short-Term Obligation

Debt or financial obligations due within one year.

Payroll Taxes

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.