A 7,000-Seat Theater Is Interested in Determining Whether There Is

question 49

Multiple Choice

A 7,000-seat theater is interested in determining whether there is a difference in attendance between shows on Tuesday evening and those on Wednesday evening.Two independent samples of 25 weeks are collected for Tuesday and Wednesday.The mean attendance on Tuesday evening is calculated as 5,500,while the mean attendance on Wednesday evening is calculated as 5,850.The known population standard deviation for attendance on Tuesday evening is 550 and the known population standard deviation for attendance on Wednesday evening is 445.What are the appropriate hypotheses to determine whether there is a difference in attendance for shows on Tuesday evening and Wednesday evening? Use Tuesday attendance as population 1 mean μ₁ and Wednesday attendance as population 2 mean μ₂,or μ_D as the mean difference in matched-pairs sampling.

• A) H₀: µ_D ≥ 0,H_A: µ_D <0
• B) H₀: µ_D = 0,H_A: µ_D ≠ 0
• C) H₀: µ₁- µ₂ = 0,H_A: µ₁- µ₂ ≠ 0
• D) H₀: µ₁- µ₂ ≥ 0,H_A: µ₁- µ₂ < 0

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle, such as accounts payable, wages payable, and short-term loans.

Company's Liquidity

The ability of a company to meet its short-term debt obligations, often assessed through liquidity ratios like the current ratio and quick ratio.

Times Interest Earned

A ratio measuring a company's ability to meet its interest obligations from its operating income.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically expressed as an annual rate.