The Manager of a Grocery Store Believes That the Number

question 56

Multiple Choice

The manager of a grocery store believes that the number of people waiting in the express check out lane follows a Poisson distribution.While watching the lane at random times throughout the day and week, she collects the following information. $\begin{array}{|l|r|r|r|r|r|r|}\hline \begin{array}{l}\text { People waiting in express } \\\text { check out lane }\end{array} & 0 & 1 & 2 & 3 & 4 & \geq 5 \\\hline \text { Observed frequency } & 35 & 41 & 22 & 14 & 3 & 2\\\hline \end{array}$
Using $\alpha$ =0.10, the critical value of chi-square for this goodness of fit test is _______.

• A)9.49
• B)7.81
• C)7.78
• D)10.28
• E)11.41

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Definitions:

Production Function

An equation or graph showing how output changes with variations in input factors, holding all else constant.

Decreasing Marginal

In economics, a situation where each additional unit of input results in a smaller increase in output compared to previous units.

Increasing Returns

A situation in production where an increase in the amount of inputs results in a disproportionately larger increase in output.

Production Isoquant

A curve that represents all combinations of inputs that produce the same level of output, used in the analysis of production technology.