Use the Following to Answer Questions

question 71

Multiple Choice

Use the following to answer questions :
A researcher wants to test if the mean annual salary of all lawyers in a city is different from $110,000.A random sample of 53 lawyers selected from the city reveals a mean annual salary of $114,000.Assume that $17,000,and that the test is to be made at the 1% significance level.
-What are the critical values of z?

• A)-1.96 and 1.96
• B)-2.58 and 2.58
• C)-2.33 and 2.33
• D)-2.05 and 2.05

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Definitions:

Natural Monopoly

A market in which a single firm can provide a good or service at a lower cost than any potential competitor, due to economies of scale.

Lower Cost

A situation where the expenses involved in producing a good or service are reduced, leading to potential savings.

Social Regulation

Rules imposed by government aimed at improving societal welfare, focusing on areas such as health, safety, and the environment, rather than on economic matters.

Natural Monopoly

A market structure where a single firm can produce at a lower cost than can two or more firms, justifying limited competition.