Answered: The manager of a local specialty store…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

The manager of a local specialty store is concerned with a possible slowdown in payments by her customers. She thinks that the average number of days receivables are outstanding is increasing. She measures the rate of payment in terms of the average number of days receivables are outstanding. Generally, the store has maintained an average of 50 days. A random sample of 25 accounts gives an average of 54 days outstanding with a standard deviation of 8 days. Conduct a hypothesis test to try to refute that the average number of days receivables are outstanding is increasing. Assume the average number of days receivables are outstanding is normally distributed.

( What is the rejection rule?
(A) Reject H₂o if it) >+ 9/2
(B)
if t sta
Reject Ho
Reject HO
if z-za
Reject Ho if 121 729/2
(D) Reject
(4) At the a = 0.01 level of significance, your
Critical value is
(a) 2.485
(b) 2.797
(c) 2.787
(d) 2.492
(5) What conclusion can be drawn from this test
at a 0.01 significance level?
(a) There is not enough evidence to reject Ho
5) There is enough endence to reject to
Ⓒ) There is not enough evidence to do this
hypotheris test.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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