A Simple Random Sample of 100 Postal Employees Is Used

question 59

Multiple Choice

A simple random sample of 100 postal employees is used to test if the average time postal employees have worked for the postal service has changed from the value of 7.5 years recorded 20 years ago.The sample mean was = 7 years with a standard deviation of s = 2 years.Assume the distribution of the time the employees have worked for the postal service is approximately Normal.The hypotheses being tested are H₀:  = 7.5 versus H_a:   7.5.A one-sample t test will be used.Suppose the mean and standard deviation obtained were based on a sample of size n = 25 postal workers rather than 100.What do we know about the value of the P-value?

• A)It would be larger.
• B)It would be smaller.
• C)It would be unchanged because the difference between and the hypothesized value  = 7.5 is unchanged.
• D)It would be unchanged because the variability measured by the standard deviation stays the same.

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Definitions:

Activity Variance

The difference between the planned activity level and the actual activity level, often analyzed in budgeting and variance analysis.

Expenses

The outflows or the use of assets in the generation of revenue, including costs of goods sold, operating expenses, and non-operating expenses.

Unfavorable Activity Variance

A discrepancy where the actual cost exceeds the budgeted or planned cost in managerial accounting, often analyzed in the context of activity-based costing.

Flexible Budget Performance Report

A report that compares the actual performance and expenditures of a business against a budget that adjusts with the level of activity, helping to provide a more accurate basis for comparison and analysis.