SCENARIO 12-12 Parents Complain That Children Read Too Few Storybooks and Watch

question 143

Multiple Choice

SCENARIO 12-12
Parents complain that children read too few storybooks and watch too much television nowadays. A
survey of 1,000 children reveals the following information on average time spent watching TV and
average time spent reading storybooks
-Referring to Scenario 12-12, if the null hypothesis of no connection between time spent watching TV and time spent reading story books is true, how many children watching less than 2
Hours of TV and reading more than 2 hours of story books on average can we expect?

• A) 42.09
• B) 155.25
• C) 262.92
• D) 987.75

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Definitions:

Diseconomies of Scale

A condition where a firm experiences increasing production costs and decreasing returns as it becomes too large.

Production Function

An economic model that describes the relationship between inputs used in production and the output of goods or services.

Marginal Cost

The extra expense associated with manufacturing an additional unit of a product or service.

Variable Cost

Expenses that fluctuate based on the level of production or the amount of output.