D101 - Job Order Costing

Which of the following situations would give us the best estimate of a population proportion?

(sample size * p-hat) The larger the number the better to predict the population proportion.

What is the range of numbers in which a population parameter lies considering margin of error?

Interval estimate

The _____ is the value of a sample statistic, which is used as an estimate of a population parameter.

Point estimate

What does a confidence interval of 95% actually mean?

The entire population should be in the average range of the sample data.

When a population is normally distributed and sigma is unknown, we calculate the margin of error as which of the following?

E=t*s_x-bar

The leadership team of a commercial airline is creating next year's budget. The actual cost of fuel is not known until it is actually purchased, but historical budgets demonstrate that jet fuel prices rise an average of 3-5% per year. When the team projects fuel expenses using today's price plus 5%, they are making use of a:

Point estimate (best guess)

Which of the following statements BEST explains why one might utilize the confidence interval?

Quantify your confidence in a conclusion derived from a sample

Which of the following is a confidence coefficient?

The correct answer choice is 0.95. The most common confidence coefficients are 0.90, 0.95, and 0.99. These are shown as a proportion as opposed to a percentage.

If we are computing standard deviation, when do we use n-1 degrees of freedom?

When dealing with a SAMPLE

What do the numbers used to create a confidence interval come from?

A sample of the entire population

What is the margin of error if a sample size of 200 with an x-bar of 125 has a standard deviation of 12 and a t-value of 2.064? Express your answer as the mean ± margin of error.

sx-bar= s/sq rt of n n=200 xbar=125, s=12, t=2.064 12/sq rt200=0.85 t*sx-bar 2.064*0.85=1.75 125 +/- 1.75

Basin Wind & Sky ski resort signs most of its employees to seasonal, full-time roles. Payroll costs vary from year to year based on dates of operation and snow conditions. Which statistical analysis element allows Basin Wind & Sky to assess these fluctuations as normal rather than abnormal?

Degree of freedom (accounts for variances)

Incorrectly calculating or applying the appropriate _____ may lead to the belief that a value is problematic (or an outlier) when, in fact, the value is accurate but dynamic.

Degree of freedom