Accounting procedures allow a business to evaluate its Inventory costs based on two methods: LIFO $($last In first out$)$ or FIFO

$($first In first out$).$ A manufacturer evaluated Its finished goods Inventory $($In $$000$ s$)$ for five products with the LIFO and FIFO

methods. To analyze the difference, they computed FIFO minus LIFO for each product. We would like to determine if the

LIFO method results in a lower cost of Inventory than the FIFO method. The company wishes to test this hypothesis at the

$0\mathrm{.}05$ level of significance.

What is the value of the test statistic?

Multiple Choice

$+2132$

$+-2776$

$+0\mathrm{.}933$

$+0\mathrm{.}47$Accounting procedures allow a business to evaluate its inventory costs based on two methods: LIFO $($last in first out$)$ or FIFO $($first in first out$).$ A manufacturer evaluated its finished goods inventory $($in $$000$s$)$ for five products with the LIFO and FIFO methods. To analyze the difference, they computed FIFO minus LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method. The company wishes to test this hypothesis at the $0\mathrm{.}05$ level of significance.

Product FIFO $($F$)$ LIFO $($L$)$

$1225221$

$2119100$

$3100113$

$4212200$

$5248245$

What is the value of the test statistic?

Multiple Choice

$+2\mathrm{.}132$

$\backslash$pm $2\mathrm{.}776$

$+0\mathrm{.}933$

$+0\mathrm{.}47$