Question

In: Statistics and Probability

A financial management consultant samples 580 outlets of a large fashion label and calculates monthly expenses...

A financial management consultant samples 580 outlets of a large fashion label and calculates monthly expenses to average $13,540 with a standard deviation of $2,800. A competing consultant reads the report and claims the outlets have exceeded the amount budgeted for, which was expected to be $12,700. The test statistic is given to be= 7,225. Conducting a suitable hypothesis test to examine the competing consultant's claims, were expenses higher on average than budgeted for? Explain?

Solutions

Expert Solution

Assuming alpha = 0.05

(5) Conclusion

It is concluded that the null hypothesis Ho is rejected. Therefore, there is enough evidence to claim that  expenses higher on average than budgeted for at the 0.05 significance level.


Related Solutions

You're a consultant for a large enterprise that needs a comprehensive IP addressing and DNS management...
You're a consultant for a large enterprise that needs a comprehensive IP addressing and DNS management solution for its physical and virtual networks. The enterprise has a primary office in Pittsburgh and three branch offices in Los Angeles, New York, and Miami. It has IT support staff only in the branch offices. The enterprise's server specialists are located in Pittsburgh. The IT directory in Pittsburgh wants to offload some of the IPAM management functions to some of the IT staff...
2(c) The mean monthly household expenses of all residents in a large city is RM1250 with...
2(c) The mean monthly household expenses of all residents in a large city is RM1250 with a standard deviation of RM225. However the population distribution of household expenses is skewed to the right. Calculate the mean and standard deviation of ?̅ and describe the shape of its sampling distribution when the sample size is (i) 30; [6 marks] (ii) 100; [6 marks] (iii) sketch distribution graphs for the above scenarios. [8 marks]
In today's world of healthcare, capital expenses are a common element to the financial management process....
In today's world of healthcare, capital expenses are a common element to the financial management process. In fact, all healthcare organizations, at some point, must convert to an Electronic Health Record (EHR) system to be compatible with the rest of the world. However, this is a major capital expense that will cost many healthcare organizations millions of dollars. Purchasing an EHR system will undoubtedly require the acquisition and use of long-term assets under a capital budget. The final assignment of...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large,...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $3.9 million in anticipation of using it as a toxic dump site for waste chemicals, but it...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large,...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $5.1 million in anticipation of using it as a toxic dump site for waste chemicals, but it...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large,...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $4.5 million in anticipation of using it as a toxic dump site for waste chemicals, but it...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large,...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $4 million in anticipation of using it as a toxic dump site for waste chemicals, but it...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large,...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $3.5 million in anticipation of using it as a toxic dump site for waste chemicals, but it...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large,...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $7 million in anticipation of using it as a toxic dump site for waste chemicals, but it...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large,...
Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $4.4 million in anticipation of using it as a toxic dump site for waste chemicals, but it...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT