PROBLEM 1E

It is claimed that the median weight m of certain loads of candy is 40,000 pounds.

(a) Use the following 13 observations and the Wilcoxon statistic to test the null hypothesis

H 0: m = 40,000 against the one-sided alternative hypothesis 40,000 at an approximate significance level of α = 0.05:

(b) What is the approximate p-value of this test?

(c) Use the sign test to test the same hypothesis.

(d) Calculate the p-value from the sign test and compare it with the p-value obtained from theWilcoxon test.

Chapter 6: Cost Behavior: Cost behavior: how costs change as volume changes o Variable costs: the costs that are incurred for every unit of volume o Fixed costs: costs that do not change in total despite wide changes in volume o Mixed costs: contain both variable and fixed cost components Cost equation: a mathematical equation for a straight line, to express how a cost behaves Variable Costs Total variable cost (y) = variable cost per unit of activity (v) x volume of activity (x) Committed fixed costs: costs that are locked in because of previous management decisions Discretionary fixed costs: that are the result of annua