A New Study Has Found That,on Average,6- to 12-Year-Old Children

question 57

Multiple Choice

A new study has found that,on average,6- to 12-year-old children are spending less time on household chores today compared to 1981 levels.Suppose two samples representative of study's results report the following summary statistics for the two periods. 1981 Levels
2008 Levels 30 minutes 24 minutes
S₁ = 4.2 minutes
S₂ = 3.9 minutes
N₁ = 30
N₂ = 30
Using a 5% confidence level,which of the following is correct?

• A) Reject H₀: µ₁− µ₂ ≤ 0 and therefore do not conclude that relative to the 1981 levels,6- to 12-year-old children spent less time in 2008 on household chores.
• B) Do not rejectH₀: µ₁− µ₂ ≤ 0 and therefore conclude that relative to the 1981 levels,6- to 12-year-old children spent less time in 2008 on household chores.
• C) Reject H₀: µ₁− µ₂ ≤ 0 and therefore conclude that relative to the 1981 levels,6- to 12-year-old children spent less time in 2008 on household chores.
• D) Do not reject H₀: µ₁- µ₂ ≤ 0 and therefore do not conclude that relative to the 1981 levels,6- to 12-year-old children spent less time in 2008 on household chores.

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Definitions:

Cash Balance

The amount of cash in a company's accounts at any given time, reflecting its immediate monetary resources.

Aging Analysis

A method to evaluate and categorize accounts receivable based on the length of time an invoice has been outstanding to manage and estimate financial health.

Allowance for Doubtful Accounts

An estimate made by a company to account for receivables that may not be collected due to credit risk.

Bad Debt Expense

An expense reported on the income statement, representing the amount of receivables a company does not expect to collect.