Accounting procedures allow a business to evaluate their inventory at - 6422

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Accounting procedures allow a business to evaluate their inventory at LIFO (Last In First Out) or FIFO (First In First Out). A manufacturer evaluated its finished goods inventory (in $ thousands) for five products both ways. Based on the following results, is LIFO more effective in keeping the value of his inventory lower? 

 

ProductFIFO (F)LIFO (L)

1225221

2119100

3100113

4212200

5248245

The 5% level of significance was selected for the t value. This example is what type of test? 

A. Paired t-test.

B. Test of proportions. 

C. One sample test of means. 

D. Two sample test of means. 

 
Solution Description

The owner of a bottling company is considering buying a new bottling machine. He has been testing two different machines that are being considered. After collecting 300 samples from each machine over several weeks, he