The manager of a local specialty store is concerned with a possible slowdown in payments by her customers. 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 with a standard deviation of 10 days. A random sample of 25 accounts gives an average of 54 days outstanding with a standard deviation of 8 days. Assume the number of days is approximately normally distributed.
-The appropriate test statistic to test the hypotheses is _____.
A)-2.00
B)-2.50
C)12.50
D)2.50
E)2.00

Question

Quizplus · Accepted Answer

The appropriate test statistic to test the hypotheses is the t-statistic, which can be calculated as (sample mean - hypothesized population mean)/(standard error of the mean). Based on the information provided in the question, the calculated t-statistic is -2.50. Therefore, the best choice is option D (2.50).

The Manager of a Local Specialty Store Is Concerned with a Possible