A Researcher Is Testing a Null Hypothesis Stating That for the General

question 23

Multiple Choice

A researcher is testing a null hypothesis stating that for the general population there is no preference between the two leading brands of cola.In a sample of n = 100 people, 35 preferred brand A and 65 preferred brand B.Assuming that the researcher uses a two-tailed test, what is the appropriate statistical decision?

• A) Reject the null hyp othesis with \( \alpha=.05 \) but not with \( \alpha=.01 \).
• B) Reject the null hypothesis with either \( \alpha=.05 \) or \( \alpha=.01 \).
• C) Fail to reject the null hypothesis with either \( \alpha=.05 \) or \( \alpha=.01 \).
• D) No decision is possible without additional information.

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Definitions:

Perfect Price Discrimination

Perfect price discrimination occurs when a seller charges every consumer the maximum they are willing to pay, capturing the entire consumer surplus as profit.

Marginal Revenue

The additional revenue that a company gains by selling one more unit of a product or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward sloping.

Intertemporal Price Discrimination

Practice of separating consumers with different demand functions into different groups by charging different prices at different points in time.