The Average Life Expectancy of Tires Produced by the Whitney $\mu$

question 143

Multiple Choice

The average life expectancy of tires produced by the Whitney Tire Company has been 40,000 miles. Management believes that due to a new production process, the life expectancy of their tires has increased. In order to test the validity of their belief, the correct set of hypotheses is

• A)H₀: \(\mu\) < 40,000 H_a: \(\mu\) 40,000
• B)H₀: \(\mu\) 40,000 H_a: \(\mu\) > 40,000
• C)H₀: \(\mu\) > 40,000 H_a: \(\mu\) 40,000
• D)H₀: \(\mu\) 40,000 H_a: \(\mu\) < 40,000

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Definitions:

Returns To Scale

The rate at which production output increases as a result of a proportional increase in all inputs or resources.

Marginal Product

The increase in output resulting from a one-unit increase in the input, keeping all other inputs constant.

Factor X

A placeholder term for an unspecified or unknown factor that can influence outcomes in a given situation or calculation.

Production Function

A production function is an equation that relates the quantity of output produced to the quantities of inputs used in production.