A Drug Company Is Interested in the Effectiveness of a New

question 44

Essay

A drug company is interested in the effectiveness of a new sleeping pill. A random sample of 50 people try the new sleeping pill and the number of additional hours of sleep (compared with the nights without any sleeping pill), X, are recorded. The sample standard deviation of X is 3 hours.
a. State the null and alternative hypotheses for the claim that the new drug increases the number of hours of sleep at least by 2 hours on average.
b. Using a standardised test statistic, test the hypothesis at the 5% level of significance if the sample mean of additional hours of sleep is 2.2 hours.

Comprehend the effects of open market operations on the economy.

Discern the Federal Reserve's role in regulating the banking sector and its impact on the economy.

Understand the relationship between bond prices, interest rates, and monetary policy actions.

Identify the organizational structure and responsibilities within the Federal Reserve System.

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Definitions:

Total Fixed Costs

The sum of all consistent, non-variable expenses a business incurs, such as rent, salaries, and insurance, regardless of production level.

Total Costs

Total costs are the sum of all expenses incurred in the production of goods or services, encompassing both fixed and variable costs.

Total Variable Costs

The sum of expenses that vary directly with the level of production or output, including costs like materials and labor.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of output or production volume.