A Consumer Product Magazine Recently Ran a Story Concerning the Increasing

question 133

Multiple Choice

A consumer product magazine recently ran a story concerning the increasing prices of digital cameras. The story stated that digital camera prices dipped a couple of years ago, but now are beginning to increase in price because of added features. According to the story, the average price of all digital cameras a couple of years ago was $\$ 215.00$ . A random sample of $n = 200$ cameras was recently taken and entered into a spreadsheet. It was desired to test to determine if that average price of all digital cameras is now more than $\$ 215.00$ . Find the large-sample rejection region appropriate for this test if we are using $\alpha = 0.05$ .

• A) Reject \(\mathrm { H } _ { 0 }\) if \(\mathrm { z } > 1.645\).
• B) Reject \(\mathrm { H } _ { 0 }\) if \(\mathrm { z } < - 1.96\).
• C) Reject \(\mathrm { H } _ { 0 }\) if \(\mathrm { z } < - 1.645\) or \(\mathrm { z } > 1.645\).
• D) Reject \(\mathrm { H } _ { 0 }\) if \(\mathrm { z } < - 1.96\) or \(\mathrm { z } > 1.96\).

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Definitions:

Concerted Action

A collaborative effort by two or more parties to achieve a specific goal, often used in labor disputes.

Wholly Owned Subsidiary

A company whose entire share capital is held by another company.

Monopoly Power

The ability of a single seller in a market to control the prices and supply of a product or service, limiting competition.

Sherman Act

A foundational antitrust law in the United States aimed at prohibiting monopolistic practices and promoting competition.