One Division of a Large Defense Contractor Manufactures Telecommunication Equipment

question 12

Multiple Choice

One division of a large defense contractor manufactures telecommunication equipment for the military.This division reports that 12% of non-electrical components are reworked.Management wants to determine if this percentage is the same as the percentage rework for the company's electrical components.Based on a random sample of 450 electrical components, they find that 46 had to be reworked.The 99% confidence interval is ________________________ .

• A)0.0652, 0.1388
• B)0.0432, 0.1608
• C)0.0763, 0.1277
• D)0.0541, 0.1499
• E)None of the above.

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Definitions:

Total Revenue

The total income received by a firm from its sales of goods or services, calculated as the unit price times the quantity sold.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.

Inelastic

A situation in which the demand or supply for a good or service is relatively unresponsive to changes in price.

Price Elasticity

The measurement of demand's elasticity to price changes for a particular good.