In a Decision to Keep or Replace a Piece of Equipment

question 109

Multiple Choice

In a decision to keep or replace a piece of equipment, calculate the total yearly expense of keeping the old equipment using the following data.

• A) $105 000
• B) $25 000
• C) $95 000
• D) $130 000

---

Definitions:

Null Hypothesis

A statement positing that there is no significant difference or effect, serving as the default assumption in hypothesis testing.

Population Variance

A measure of the spread or dispersion within a dataset, representing the average of squared deviations from the mean.

Level of Significance

The likelihood of incorrectly dismissing the null hypothesis in a statistical analysis, frequently represented by the symbol alpha.

Population Variance

A measure quantifying the degree to which individual points in a whole population differ from the population mean.