A Small Business Ships Specialty Homemade Candies to Anywhere in the World.Past

question 13

Multiple Choice

A small business ships specialty homemade candies to anywhere in the world.Past records indicate that the weight of orders is normally distributed.Suppose a random sample of 16 orders is selected and each is weighed.The sample mean was found to be 110 grams with a standard deviation of 14 grams.Which of the following statements is true?

• A)The sampling distribution for the sample mean follows the t-distribution with 16 degrees of freedom.
• B)The sampling distribution for the sample mean follows the t-distribution with 15 degrees of freedom.
• C)The mean of the sampling distribution for the sample mean is 110 grams.
• D)The sampling distribution for the sample mean is Normal with a mean of 110 grams and standard deviation of 14 grams.
• E)The standard error is 14 grams.

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Definitions:

Duopoly

A market structure characterized by two producers/sellers in competition with each other.

Constant Costs

Costs that remain unchanged regardless of the level of output or activity within a certain range.

Corncob Pipes

Pipes made from the dried cob of a corn plant, often used for smoking tobacco.

Cournot Reaction Function

A mathematical representation in economics that shows how one firm reacts to the quantity choice of another firm in a duopoly market setting.