A corporate analyst is testing whether mean inventory turnover has increased.Inventory turnover in six randomly chosen product distribution centers (PDCs)is shown. The degrees of freedom for the appropriate test would be
A)6
B)5
C)4
D)12

Question

A corporate analyst is testing whether mean inventory turnover has increased.Inventory turnover in six randomly chosen product distribution centers (PDCs)is shown.  The degrees of freedom for the appropriate test would be
A)6 
B)5 
C)4 
D)12

Quizplus · Accepted Answer

In this scenario, the corporate analyst is comparing the mean inventory turnover in six PDCs to see if there has been an increase. Since the analyst is comparing one set of data to another, a two-sample t-test would be appropriate. The degrees of freedom for a two-sample t-test are calculated by subtracting 1 from the sum of the sample sizes of both groups (n1 + n2 - 2). In this case, since there is only one set of data (the inventory turnover of the six PDCs), the appropriate test would be a one-sample t-test. The degrees of freedom for a one-sample t-test are calculated by subtracting 1 from the sample size (n - 1). Since there are six PDCs, the sample size would be 6, and the degrees of freedom for the appropriate test would be 6 - 1 = 5. Therefore, the best choice is B.

A Corporate Analyst Is Testing Whether Mean Inventory Turnover Has