It Is Estimated That the Average Person in the United

question 8

Short Answer

It is estimated that the average person in the United States uses 123 gallons of water per day. Some environmentalists believe this figure is too high and conduct a survey of 40 randomly selected Americans. They find a mean of 113.03 gallons and a population standard deviation of 25.99 gallons. Calculate the appropriate test statistic to test the hypotheses using the critical value rule.

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Definitions:

Indifference Curve

A graph representing combinations of goods among which a consumer is indifferent, showing preference levels.

Bundle

A collection of items or services offered together as a single package.

Satisfaction

The fulfillment or gratification of a desire, need, or appetite; a measure of utilities or happiness obtained from consuming goods or services.

Marginal Rate

The rate at which something changes as the amount of that something increases or decreases, often used in the context of tax, referring to the rate applied to the last dollar earned.