A manufacturing company has the following fixed monthly costs and unit variable costs:
Rent = $2,200
Utilities = $375
Variable costs for materials and assembly = $13.25/unit
Monthly labor = $750
Given is the product is sold at $24.99 per unit
Let the number of units sold be x
Adding total cost =
Equation becomes:
x= 283.21
So, rounding it to nearest whole number we get, 283 units.
Answer:
Part A: The null hypothesis failed to be rejected.
Part B: The null hypothesis failed to be rejected.
Step-by-step explanation:
We have an hypothesis test with null and alternative hypothesis H0: p = 0.5 versus Ha: p > 0.5, which has the test statistic z=1.15.
Part A: If the significance level is 0.05, the conclusion depends on the P-value.
If the P-value is below 5%, the null hypothesis is rejected.
The P-value for this right-tailed tes and z=1.15 is:
The P-value is bigger than the significance level, so the effect is not significant and the null hypothesis is failed to be rejected.
Part B: In this case, the significance level is 0.01 and, as the alternative hypothesis is defined with an unequal sign, the test is two-tailed.
This changes the way we calculate the P-value, as we need to compute the two tails.
The P-value is:
The P-value is bigger than the significance level, so the effect is not significant and the null hypothesis is failed to be rejected.
