Question related hypothesis testing

Assignment Help Business Management

Reference no: EM1377138

The J.C. Adams Corporation, a mail-order company that deals in small gifts, charges a flat rate for postage regardless of weights of the packages. The flat postage charge is the current postage rate per ounce times 16.90. The company management assumes that in the long run the firm will break even on postage costs. The accounting department disputes the fixed postage charge and suggests that it should be changed. Management, however, wishes to be at least 95% certain that a policy change is justified since it may incur postage losses or be unattractive to potential customers. Further, management wishes to be 99 percent certain that if a policy change is made, the change will not incur losses due to insufficient postage charges to customers. Management decides to take a random sample of the weights of 100 packages mailed this month and base the decision on the sample results. The sample indicates a mean weight of 17.8 ounces and a standard deviation of 3.2 ounces.
a. Determine the action to be taken by J. C. Adams Company, if any, and explain your conclusion.

Reference no: EM1377138

Questions Cloud

How much of an impact did this dss have : Motivation is an important topic in international human resource management, as many MNC managers assume they can motivate their overseas personnel with same approaches which are used in home Nation."

Discussion of the social and political condition : Research The Irish Potato Famine of 1846-50 so that the panel can explore shared reasons and discuss what can be done to prevent similar outbreaks in future.

Illustrate what are its chief elements : Illustrate what are its chief elements also characteristics of Wal-Mart culture. Why does culture seem to be so much stronger in Bentonville than out in stores.

Illustrate what is it about project management which offers : Illustrate what is it about project management which offers Mega tech a competitive advantage in its industry.

Question related hypothesis testing : The J.C. Adams Corporation, a mail-order company that deals in small gifts, charges a flat rate for postage regardless of weights of the packages.

Describe their implications for cost of creating products : Explain four Vs of operations process, also describe their implications for cost of creating products or services.

Technology base training methods : You have reviewed your work to date with many members of senior management. They are concerned that new workers will spend their 1st few weeks in classroom and not on the job.

Disease prevention : Explain how early in life should a person be concerned with preventing diseases such as heart disease, diabetes, cancer, or osteoporosis?

Improvement strategies for process : Riordan Corporation just retooled Michigan facility to create custom plastic parts, we could run a pilot process to develop production with an eye toward streamlining the procedure to manufacture more and ultimately meet a greater customer demand

User Account

All Pages