One in the News Feature Reports That General Motors Planned

question 82

Multiple Choice

One In the News feature reports that General Motors planned to essentially quit making cars and trucks in the United States for nine weeks from mid-May through July 2009 and Omaha Power planned to close one of its nuclear plants permanently.Based on these particular news clips,what is the difference between GM's and Omaha Power's decisions?

• A)Omaha Power was trying to get rid of excess inventory,and GM was trying to become more efficient.
• B)GM was trying to maximize profits while Omaha Power was trying to minimize losses.
• C)GM's decision to idle plants was a short-run shutdown decision.Omaha Power,by contrast,made a long-run decision to exit a specific market.
• D)There is no difference between GM's and Omaha Power's decisions;both were trying to get rid of excess inventory.

---

Definitions:

Population Variances

A measure of the spread of a population's values, indicating how much the members of the population differ from the population mean.

Population Means

The average value of a set of characteristics within a total population.

Sample Means

Refers to the average values computed from multiple samples from a population, usually to estimate the population mean.

Pooled Variance

combines the variances of two or more groups, assuming they have the same underlying variance, to estimate a common variance.