A National Organization Has Been Working with Utilities Throughout the Nation

question 115

Multiple Choice

A national organization has been working with utilities throughout the nation to find sites for large wind machines that generate electricity. Wind speeds must average more than 19 miles per hour $( \mathrm { mph } )$ for a site to be acceptable. Recently, the organization conducted wind speed tests at a particular site. Based on a sample of $n = 45$ wind speed recordings (taken at random intervals) , the wind speed at the site averaged $\bar { x } = 19.9 \mathrm { mph }$ , with a standard deviation of $s = 4.5 \mathrm { mph }$ . To determine whether the site meets the organization's requirements, consider the test, $H _ { 0 } : \mu = 19$ vs. $H _ { \mathrm { a } } : \mu > 19$ , where $\mu$ is the true mean wind speed at the site and $\alpha = .01$ . Suppose the value of the test statistic were computed to be $1.34$ . State the conclusion.

• A) At \(\alpha = .01\), there is insufficient evidence to conclude the true mean wind speed at the site exceeds \(19 \mathrm { mph }\).
• B) At \(\alpha = .01\), there is sufficient evidence to conclude the true mean wind speed at the site exceeds \(19 \mathrm { mph }\).
• C) We are \(99 \%\) confident that the site does not meet the organization's requirements.
• D) We are \(99 \%\) confident that the site meets the organization's requirements.

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Definitions:

Long-Run Equilibrium

A state in a market where all factors of production and costs are variable, leading to no economic profit for firms in perfect competition.

Monopolistically Competitive

A market structure characterized by many firms offering products that are similar but not identical, allowing for some degree of market power.

Average Total Cost

Total cost divided by quantity of output produced. Also referred to as average cost.

Marginal Decision Rule

A strategy in economics where decisions are made based on the additional benefits and costs of a small change in the production or consumption.