In Testing the Difference Between Two Population Means Using Two

question 75

Multiple Choice

In testing the difference between two population means using two independent samples, under which of the following conditions would we use the pooled variance in estimating the standard error of the sampling distribution of the sample mean difference ?

• A) The sample sizes are both large.
• B) The populations are normal with equal variances.
• C) The populations are non-normal with unequal variances.

---

Definitions:

Accounts Payable Period

The average time it takes for a company to pay off its suppliers.

Credit Sales

Transactions in which goods or services are provided to a customer with the agreement that payment will be made at a later date.

COGS

Stands for Cost of Goods Sold, which represents the direct costs attributable to the production of the goods sold by a company, including materials and labor.

Cash Cycle

The cash cycle measures the time it takes for a company to convert its inventory and other resources into cash flows from sales, indicating the efficiency of a company's cash management.