Accounting procedures allow a business to evaluate its inventory costs based on two methods: LIFO (last in first out) or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIFO methods. To analyze the difference, they computed FIFO minus LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method. The company wishes to test this hypothesis at the 0.05 level of significance. Product FIFO (F) LIFO (L) 1 229 220 2 122 102 3 103 114 4 214 203 5 252 247 What is the value of the test statistic? Multiple Choice +1.338 ±3.181 +0.87 +2.537
Accounting procedures allow a business to evaluate its inventory costs based on two methods: LIFO (last in first out) or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIFO methods. To analyze the difference, they computed FIFO minus LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method. The company wishes to test this hypothesis at the 0.05 level of significance. Product FIFO (F) LIFO (L) 1 229 220 2 122 102 3 103 114 4 214 203 5 252 247 What is the value of the test statistic? Multiple Choice +1.338 ±3.181 +0.87 +2.537
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 26EQ
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Accounting procedures allow a business to evaluate its inventory costs based on two methods: LIFO (last in first out) or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIFO methods. To analyze the difference, they computed FIFO minus LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method. The company wishes to test this hypothesis at the 0.05 level of significance.
| Product | FIFO (F) | LIFO (L) |
|---|---|---|
| 1 | 229 | 220 |
| 2 | 122 | 102 |
| 3 | 103 | 114 |
| 4 | 214 | 203 |
| 5 | 252 | 247 |
What is the value of the test statistic?
Multiple Choice
-
+1.338
-
±3.181
-
+0.87
-
+2.537
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