The Manager of a Video Library Would Like the Variance

question 20

Multiple Choice

The manager of a video library would like the variance of the waiting times of the customers not to exceed 2.30 minutes-squared. He would like to add an additional billing counter if the variance exceeds the cut-off. He checks the recent sample data. For a random sample of 24 customer waiting times, he arrives at a sample variance of 3.8 minutes-squared. The manager assumes the waiting times to be normally distributed. Which of the following is the correct approximation of the p-value used to conduct this test?

• A) p-value lies between 0.005 and 0.010
• B) p-value lies between 0.010 and 0.025
• C) p-value lies between 0.050 and 0.10
• D) p-value lies between 0.025 and 0.05

---

Definitions:

Company Tax Rate

The rate at which a company’s taxable income is taxed by the government, which varies by country and sometimes also by the type and size of the company.

Inventories

Goods owned with the intention to sell them through standard business activities, in the stage of being made for sale, or as parts or materials meant for consumption in production activities or while offering services.

Consolidation Worksheet

A tool used in the preparation of consolidated financial statements to combine the financial information of a parent company with its subsidiaries.

Subsidiary Entity

An entity that is controlled by another entity, the control often being evidenced through ownership of more than half of the voting rights or through other means of control.