The Bottler of a Certain Soft Drink Claims Their Equipment $\sigma$

question 4

Multiple Choice

The bottler of a certain soft drink claims their equipment to be accurate and that the variance of all filled bottles is 0.05 or less. The null hypothesis in a test to confirm the claim would be written as

• A)H₀: \(\sigma\)² \(\ge\)0.05
• B)H₀: \(\sigma\)² > 0.05
• C)H₀: \(\sigma\)² < 0.05
• D)H₀: \(\sigma\)² \(\le\) 0.05

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Definitions:

Per-Unit Cost of Production

The total expense incurred in producing a single unit of a product, including both fixed and variable costs.

Economies of Scale

Refers to the cost advantage experienced by an entity due to expansion in production, leading to lower per-unit costs.

Diseconomies of Scale

The phenomenon where production costs per unit increase as the scale of operation or output increases.