A Manufacturer Wants to Increase the Shelf Life of a Line

question 129

Multiple Choice

A manufacturer wants to increase the shelf life of a line of cake mixes. Past records indicate that the average shelf life of the mix is 216 days. After a revised mix has been developed, a sample of nine boxes of cake mix gave these shelf lives (in days) : 215, 217, 218, 219, 216, 217, 217, 218 and 218. At the 0.025 level, has the shelf life of the cake mix increased?

• A) Yes, because computed t is greater than the critical value.
• B) Yes, because computed t is less than the critical value.
• C) No, because computed t lies in the region of acceptance.
• D) No, because 217.24 is quite close to 216.

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Definitions:

Reportable Segments

Reportable segments are parts of a business that can be separately identified by the nature of their operations, products, services, or geography, and for which discrete financial information is available and regularly reviewed by the entity's chief operating decision maker.

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives.

Capital Expenditures

Capital expenditures are funds used by a company to acquire, improve, or maintain physical assets such as property, industrial buildings, or equipment.

Interim Financial Reporting

Financial statements prepared and disclosed at intervals shorter than a fiscal year, typically quarterly.