What is the appropriate test statistic

Reference no: EM133009798

Question: The Depantment of Health is concerned that the average percentage mark up on aparticular vitamin product is more than 40%. To test their concern, they sampled 100pharmacies that sell the product, and found that the mean percentage mark-up was 44.1%.

Asume that the population standard deviation of the percentage mark up P is 14.7

a. What is the appropriate test statistic for this test situation? Why ?

b. Conduct an appropriate statistical test at the 19% level of significance todetermine whether the Department of Health''s concern is justified. WhatCorcdlution can be orawn?

c. Compute the p- value for the test in b. and draw the appropriate managementConchusion based an the p-value.

Reference no: EM133009798

Questions Cloud

What is the cash balance per bank statement : What is the cash balance per bank statement? Able Company received the bank statement. However, the closing balance of the account was unreadable.

Which should not be included in cash in the current year-end : At the end of the current year, Which should not be included in "cash" in the current year-end statement of financial position? At the end of the current year.

What is the amount of outstanding checks on july : What is the amount of outstanding checks on July 31? The manager wrote a check for traveling expenses of P100,000 while out of town. The check was not recorded.

What is the cash balance per books at may : What is the cash balance per books at May 31? Deposit of May 30 not recorded by bank until June 1 - 4,880; Proceeds of a bank loan of May 30.

What is the appropriate test statistic : What is the appropriate test statistic for this test situation - Compute the p- value for the test in b. and draw the appropriate management Conchusion

Which is concerning measurement of cash and cash equivalents : Which is concerning measurement of cash and cash equivalents? Cash equivalents should be measured at maturity value, meaning face value plus interest.

Which is not considered as a cash equivalent : Which is not considered as a cash equivalent? A three-year treasury note maturing on May 30 of the current year purchased by the entity on April 15.

Which of statements in relation to petty cash is incorrect : Which of the statements in relation to petty cash is incorrect? The imprest petty cash system in effect adheres to the rule of disbursement by check.

What trade can you put on to monetize the miss pricing : What trade can you put on to monetize the miss pricing and What is the forward prices institution C sent to the client? Explain how she calculated it

User Account

All Pages