Question

2. Accounting procedures allow a business to evaluate their inventory costs based on two methods: LIFO (last in first out) or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIFO methods. To analyze the difference, they computed FIFO − LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method.

Product	FIFO (F)	LIFO (L)
1	225	221
2	119	100
3	100	113
4	212	200
5	248	245

What is the alternate hypothesis?

Multiple Choice

• H₁: µ_d ≤ 0

• H₁: µ_d ≠ 0

• H₁: µ_d = 0

• H₁: µ_d > 0

3. A recent study focused on the number of times men and women send a Twitter message in a day. The information is summarized here.

	Sample Size	Sample Mean	Population Standard Deviation
Men	25	23	5
Women	30	28	10

At the 0.01 significance level, is there a difference in the mean number of times men and women send a Twitter message in a day? Based on the p-value, what is your conclusion?

Multiple Choice

• Fail to reject the null hypothesis.

• Reject the null hypothesis and conclude the means are different.

• Reject the null hypothesis and conclude the means are the same.

• Fail to reject the null hypothesis and conclude the means are different.

6. Accounting procedures allow a business to evaluate its inventory costs based on two methods: LIFO (last in first out) or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIFO methods. To analyze the difference, they computed FIFO − LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method.

Product	FIFO (F)	LIFO (L)
1	225	221
2	119	100
3	100	113
4	212	200
5	248	245

What is the value of calculated t?

Multiple Choice

• +0.933

• +0.47

• −2.028

• ±2.776

7. Use the following table to determine whether or not there is a significant difference between the average hourly wages at two manufacturing companies.

Manufacture 1	Manufacture 2
n1 = 81	n2 = 64
x1=$15.80x1=$15.80	x2=$15.00x2=$15.00
σ1 = $3.00	σ2 = $2.25

The p-value is ______.

rev: 12_06_2019_QC_CS-192965

Multiple Choice

• 2.58

• 0.036

• 0.4664

• 0.0672

9. A recent study focused on the number of times men and women send a Twitter message in a day. The information is summarized here.

	Sample Size	Sample Mean	Population Standard Deviation
Men	25	23	5
Women	30	28	10

At the 0.01 significance level, we ask if there is a difference in the mean number of times men and women send a Twitter message in a day. What is the value of the test statistic for this hypothesis test?

Multiple Choice

• 2.40

• 2.672

• 2.58

• 2.668

11. A company is researching the effectiveness of a new website design to decrease the time to access a website. Five website users were randomly selected, and their times (in seconds) to access the website with the old and new designs were recorded. To compare the times, they computed new website design time − old website design time. The results follow.

User	Old Website Design	New Website Design
A	30	25
B	45	30
C	25	20
D	32	30
E	28	27

For a 0.01 significance level, what is the critical value?

Multiple Choice

• −1.895

• −3.747

• −2.447

• −2.256

Answer 1

2)

H₁: µ_d > 0

3)

std error σx1-x2=√(σ21/n1+σ22/n2)    =			2.082
test stat z =(x1-x2)/σx1-x2     =			-2.40
p value : =			0.0164

since p value >0.01 ;

Fail to reject the null hypothesis.

6)

mean dbar=	d̅                           =	5.000
degree of freedom =n-1                            =		4.000
Std deviaiton SD=√(Σd2-(Σd)2/n)/(n-1) =		11.979
std error=Se=SD/√n=		5.3572
test statistic            =	(d̅-μd)/Se         =	+0.933

7)

std error σ1-2=√(σ21/n1+σ22/n2)    =			0.436
test stat z =(x1-x2-Δo)/σ1-2     =			1.83
p value : =			0.0672

9)

std error σx1-x2=√(σ21/n1+σ22/n2)    =			2.082
test stat z =(x1-x2-Δo)/σx1-x2     =			-2.40

11)

for 0.01 level with left tailed test and n-1= 4 df, critical value of t=

-3.747