An Electronics Retailer Believes That, at Most, 40% of Their

question 142

Multiple Choice

An electronics retailer believes that, at most, 40% of their cell phone inventory was sold during November. The retailer surveyed 80 dealers and found that 38% of the inventory was sold. Since 38% is less than 40%, is this difference of 2 percentage points sampling error or a significant difference? Test at the 0.05 level. The computed z = -0.37.

• A) The 2% is a significant difference.
• B) We cannot determine if the 2% is a significant difference.
• C) There is not enough information to reach a conclusion.
• D) None Apply.

---

Definitions:

Wages Expense

The total cost incurred by a business for paying salaries and wages to its employees during a particular period.

Finished Goods

Items that are fully manufactured but have not been sold or dispatched to the final consumer.

Work in Process

Inventory items that are in the production process but are not yet completed goods, often abbreviated as WIP.

Factory Overhead

Indirect costs related to manufacturing, including utilities, depreciation of equipment, and salaries of supervisors.