Nacirema Airlines Is Buying a Fleet of New Fuel-Efficient Planes

question 49

Multiple Choice

Nacirema Airlines is buying a fleet of new fuel-efficient planes.The HogJet and the LitheJet both meet their price and performance needs,and both planes meet EPA noise guidelines.However,the quieter plane is preferred.Each plane is flown through a typical takeoff and landing sequence 10 times,while remote sensors at ground level record the noise levels (in decibels) .The table below summarizes the sound level tests using Excel's default level of significance (α = .05) . If we switched from α = 0.05 to α = 0.005 in a two-tailed test of means,our assumption about variances (assumed equal or assumed unequal) would

• A)affect the decision.
• B)not affect the decision.
• C)require a new analysis.

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Definitions:

Discount Amortization

The gradual write-off of the discount amount on bonds payable over the life of the bond to accurately reflect interest expense over time.

Straight-Line Method

A method of calculating depreciation of an asset by evenly spreading the cost over its useful life.

Bond Interest Expense

The cost incurred by an issuer of bonds for paying interest to bondholders, typically recognized over the life of the bonds.

Adjusting Entry

A journal entry made at the end of an accounting period to update the accounts for accurate financial reporting.