Based on a Random Sample of 13 Tire Changes,the Mean

question 37

Multiple Choice

Based on a random sample of 13 tire changes,the mean time to change a tire on a Boeing 777 has a mean of 59.5 minutes with a standard deviation of 8.4 minutes.For 10 tire changes on a Boeing 787 the mean time was 64.3 minutes with a standard deviation of 12.4 minutes.To test for equal variances in a two-tailed test at  = .10,the critical values are:

• A) 3.73 and 0.228
• B) 2.51 and 3.67
• C) 3.07 and 0.398
• D) 3.07 and 0.357

Understand the use of critical values in hypothesis testing and their relation to significance levels.

Understand the relationship between sample size and Type I error.

Calculate and interpret test statistics, critical values, and make conclusions in hypothesis testing.

Describe the use of p-value in testing hypotheses and making decisions.

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Definitions:

Unit Costs

The cost incurred to produce, purchase, or supply one unit of a product or service, calculated by dividing total costs by the number of units produced or purchased.

Inventory Items

Goods or materials that a business holds for the purpose of sale or production.

Retail Inventory Method

An accounting method used by retailers to estimate inventory cost by using a consistent markup and grouping similar items.

Cost-To-Retail Ratio

A calculation used in inventory accounting that helps determine the ending inventory value under the retail inventory method, comparing the cost of goods to their retail price.