SCENARIO 12-13 Recent Studies Have Found That American Children Are More Obese

question 104

Multiple Choice

SCENARIO 12-13
Recent studies have found that American children are more obese than in the past. The amount of time children spent watching television has received much of the blame. A survey of 100 ten-yearolds revealed the following with regards to weights and average number of hours a day spent watching television. We are interested in testing whether the mean number of hours spent watching TV and weights are independent at 1% level of significance.
-Referring to Scenario 12-13,if there is no connection between weights and average number of hours spent watching TV,we should expect how many children to be spending 3-6 hours on average watching TV and are more than 10 lbs.underweight?

• A)5
• B)5.8
• C)6.2

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Definitions:

Elastic Demand

A condition where the quantity demanded of a good or service is highly responsive to changes in its price.

Output Effect

The impact on total revenue when a firm changes its output level, considering demand elasticity.

Substitution Effect

The change in consumption patterns due to a relative change in prices leading consumers to substitute one product for another.

Derived Demand

The demand for a good or service that arises from the demand for another good or service; for example, the demand for steel is derived from the demand for cars.