Exhibit 9-7 A Random Sample of 16 Statistics Examinations from a Large

question 66

Multiple Choice

Exhibit 9-7
A random sample of 16 statistics examinations from a large population was taken. The average score in the sample was 78.6 with a variance of 64. We are interested in determining whether the average grade of the population is significantly more than 75. Assume the distribution of the population of grades is normal.
-Refer to Exhibit 9-7. At 95% confidence, it can be concluded that the average grade of the population

• A)is not significantly greater than 75
• B)is significantly greater than 75
• C)is not significantly greater than 78.6
• D)is significantly greater than 78.6

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Definitions:

Marginal Cost

The cost of producing one additional unit of a good or service, reflecting changes in variable costs.

Cartel

An agreement among competing businesses to control prices or exclude entry of a new competitor in the market, aiming at maximizing their profits collectively.

Fixed Cost

Costs that do not vary with the level of output produced, such as rent, salaries, and some utilities.

Cartel

A group of manufacturers or suppliers formed to keep prices high and limit competition.