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NEW QUESTION 24
A manager at an internet retailer wants to determine whether a recent change in the company's supply chain strategy has affected the amount of time it takes for an order to reach a customer. The historical average amount of time from placing the order to final delivery is 5.2 days. A random sample of 60 orders taken after the implementation of the new strategy indicates an average delivery time of 4.5 days with a standard deviation of 1.4 days. The manager wishes to perform a hypothesis test at a 95% confidence level. Which option represents the correct calculation for the range of likely sample means? Please note that the function for confidence intervals in Excel is =CONFIDENCE.NORM(alpha, standard_dev, size).

  • A. =4.5 +- CONFIDENCE.NORM(0.025,1.4,60)
  • B. =4.5 +- CONFIDENCE.NORM(0.05,1.4,60)
  • C. =5.2 +- CONFIDENCE.NORM(0.025,1.4,60)
  • D. =5.2 +- CONFIDENCE.NORM(0.05,1.4,60)

Answer: D

 

NEW QUESTION 25
An airline company wants to improve its understanding of its product and customers. Using an internal model, the company predicts that business class revenues will decrease if the price of business class is reduced, but coach class revenues will increase if the price of coach class is reduced. Why might this be the case?

  • A. Coach travelers often pay out of their own pocket, whereas business travelers do not.
  • B. There are too many business class seats in the airplane.
  • C. Coach travelers typically have a lower opportunity cost of time than business travelers.
  • D. Business class travel is a luxury good.

Answer: C

 

NEW QUESTION 26
What denominator amounts does an analyst use to calculate the common size balance sheet and income statement?

  • A. Total assets and sales, respectively
  • B. Total assets and operating income, respectively
  • C. Current assets and net income, respectively
  • D. Owner's equity and sales, respectively

Answer: A

 

NEW QUESTION 27
Why are ratios important when comparing different companies within the same industry?

  • A. Accounting policies might be different between companies.
  • B. They eliminate the effect of size differences among the different companies.
  • C. They are useful for assessing the stage of the industry.
  • D. They reflect macroeconomic factors.

Answer: B

 

NEW QUESTION 28
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