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

question 86

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 ( = 0.05) . If we switched from  = .05 to  = .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.

---

Definitions:

Residual Value

Residual Value is the estimated value of an asset at the end of its useful life, often considered in depreciation calculations or when leasing assets.

Cash Inflows

The total amount of money received by a company during a given period from various sources, including operations, investment, and financing activities.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the total present value of its expected future cash flows minus the initial investment cost.

Rate Of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.