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:

Total Fixed Cost

The sum of all costs that do not change with the level of output or activity.

Total Variable Cost

Total Variable Cost is the sum of all costs that vary directly with the level of production, such as materials and labor costs.

Purely Competitive Firm

A firm operating in a market where there are many sellers and buyers, products are identical, and there are no barriers to entry, leading to zero long-term economic profits.

Profit

The financial gain made in a transaction or operation, calculated as the difference between revenue and expenses.