The Following Random Sample from a Population Whose Values Were

question 29

Multiple Choice

The following random sample from a population whose values were normally distributed was collected. 10
12
18
16
​
The 80% confidence interval for μ is

• A) 12.054 to 15.946.
• B) 10.108 to 17.892.
• C) 10.321 to 17.679.
• D) 11.009 to 16.991.

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Definitions:

Constant Returns to Scale

A situation in which output increases by the same proportion as inputs when the scale of production is changed.

Long-run Average Total Cost

The average total cost when all factors of production are variable and economies of scale are fully exploited, indicating the lowest possible cost per unit.

Economies of Scale

Economies of scale refer to the cost advantage that arises with an increased output of a product, as fixed costs are spread out over more units of production, leading to a decrease in the per-unit cost.

Diseconomies of Scale

The phenomenon where production costs increase as a firm's production scale becomes too large, leading to inefficiencies.