Use the Following Information to Answer the Question

question 55

Multiple Choice

Use the following information to answer the question. Lambda olive oil is touted as the "World's most expensive olive oil." A twelve ounce bottle typically costs fifty dollars or more. In a blind taste test, a group of food experts tasted three premium olive oils, one of which was Lambda olive oil. When asked to pick the Lambda olive oil, 84 got it right and 87 got it wrong.
-Calculate the observed value of the chi- square statistic. Round to the nearest hundredth.

• A)19.18
• B)12.79
• C)6.39
• D)23.68

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Definitions:

Smaller Percentage Increase

Refers to a rate of increase that is less significant or lower in proportion compared to another.

Average Costs

The cost per unit of output, calculated by dividing the total cost of production by the number of units produced.

Constant-Cost Industry

An industry in which the cost per unit does not change as the industry's overall output changes.

Diseconomies of Scale

The condition in which a company or production process becomes less efficient as it grows larger, leading to increased costs per unit.