A Radio Station Claims That the Amount of Advertising Each

question 129

Essay

A radio station claims that the amount of advertising each hour has an a mean of 17 minutes and a standard deviation of 2.5 minutes. You listen to the radio station for 1 hour and observe that the amount of advertising time is 11.75 minutes. Based on your observation, what would you infer about the radio station's claim?

---

Definitions:

Short-Run Profit

The profit earned by a firm in the short term, typically considering only variable costs and fixed costs remaining constant.

Market Price

The existing rate at which a commodity or service is offered for buying or selling in a marketplace.

Soybeans

A type of legume native to East Asia, widely grown for its edible bean which has numerous uses.

Shut-Down Price

The price at which a firm ceases production in the short run because the market price has fallen below the minimum average variable cost.