Exhibit 10-10 a Local Department Store Is Studying the Shopping Habits of Habits

question 150

Multiple Choice

Exhibit 10-10
A local department store is studying the shopping habits of its customers. They think that the longer customers spend in the store the more they buy. Their study resulted in the following information regarding the amount of time women and men spent in a store.

-Refer to Exhibit 10-10. The point estimate for the standard deviation of the difference between the means of the two populations is

• A)9
• B)-1
• C)-9

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Definitions:

Variable Expenses

Expenditures that change in direct relation to production levels or sales quantities.

Mixed Cost

A cost composed of a mixture of fixed and variable components. Costs are fixed for a set level of production or consumption, becoming variable with further production or consumption.

Fixed Expenses

Regular expenses that do not vary in total over a wide range of activity levels.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted; indicates the contribution towards covering fixed expenses and generating profit.