The Lifetime of a Squirrel Follows a Normal Distribution with Mean

question 83

Multiple Choice

The lifetime of a squirrel follows a normal distribution with mean μ months and a standard deviation $\sigma$ =7 months.To test the alternative hypothesis that μ > 40, 25 squirrels are randomly selected.The null hypothesis is rejected when the sample mean is bigger than 43.Assuming that μ=45, the probability of type II error is approximately _________.

• A)0.076
• B)0.016
• C)0.05
• D)0.011
• E)0.983

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Definitions:

Profit-maximizing Output

The maximum profit attainment point for a company occurs when the marginal cost matches the marginal revenue, indicating the optimum production level.

Purely Competitive Firm

A firm operating in a market where there are many sellers and buyers, the products are homogenous, and there are no barriers to entry or exit, leading to market prices being determined by supply and demand.

Short Run

A period of time during which at least one of a firm's inputs is fixed, limiting its ability to adjust to changes in demand or production costs.