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In a Sample of 120 People, 50 Indicated That They

question 57

Essay

In a sample of 120 people, 50 indicated that they prefer domestic automobiles, 60 said they prefer foreign-made cars, and 10 indicated no difference in their preference. At a .05 level of significance, determine if there is evidence of a significant difference in the preferences for the two makes of automobiles. Hint: Use the continuity correction factor.


Definitions:

Isocost Line

A graphical representation in economics that shows all possible combinations of inputs that have the same total cost.

Fuel-Efficient Rate

A measure of how effectively a vehicle converts fuel into travel distance, often expressed in miles per gallon (mpg) or liters per 100 kilometers (l/100km).

Isocost Line

A graph line representing all combinations of inputs that can be purchased for the same total cost, assisting in the analysis of cost minimization.

Merchandise Deliveries

The process of transporting goods from a supplier to a buyer.

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