A Company Has a Contract to Supply Specialized Batteries to a Manufacturer

question 10

Multiple Choice

A company has a contract to supply specialized batteries to a manufacturer with a mean width of 54mm and a variance of 1.8 or less with an alpha of 0.05.The company randomly tests 20 of these batteries to ensure that they are meeting the requirements of the contract.If the most recent test had a variance of 1.9, what should the company do?

• A)Continue production
• B)Test the mean
• C)Break the contract
• D)Stop production to fix issues
• E)Ask to revise the contract

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Definitions:

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Substitution Effect

The change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods.

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs.

Equilibrium

A state where supply and demand balance each other, and as a result, prices become stable.