The Local Pharmacy Prides Itself on the Accuracy of the Number

question 138

Short Answer

The local pharmacy prides itself on the accuracy of the number of tablets that are dispensed in a 60-count prescription.The new manager feels that the pharmacy assistants might have become careless in counting due to an increase in the volume of prescriptions.To test her theory,she randomly selects 40 prescriptions requiring 60 tablets and recounts the number in each bottle.She finds a sample mean of 61.35.Assume a population standard deviation of 4.45.If we have preset the probability of a Type I error equal to .05,compute the probability of a Type II error.(Assume an alternative value of the population mean of 61. )The claim is that the tablet count is different from 60.

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Definitions:

Linear Demand Curve

A graphical representation of the relationship between the quantity of a good that consumers are willing to buy and its price when the relationship is directly proportional.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in price, income, or other related factors.

Price Ranges

The spread between the lowest and highest price at which a good or service is sold in a market.

Price Elasticity

A calculation that shows the impact of price changes on the quantity of a good that is demanded.