You Want to Test Whether the Population Variance Differs from 50.From

question 73

Multiple Choice

You want to test whether the population variance differs from 50.From a sample of 25 observations drawn from a normally distributed population,you calculate s² = 80.When conducting this test at the 5% significance level,the value of test statistic, is

• A) 5.625.
• B) 12.401.
• C) 14.400.
• D) 39.364.

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Definitions:

Periodic inventory system

An inventory accounting system where updates to inventory levels are made on a periodic basis, rather than each time a sale or purchase occurs.

Physical inventory

The actual counting and recording of merchandise goods and materials held by a business for the purpose of verifying stock levels and value.

End of the period

Refers to the conclusion of an accounting period, at which financial statements are prepared.

Net realizable value

The estimated selling price of goods, minus the cost of their sale or disposal.