In a Controlled Laboratory Environment, a Random Sample of 10

question 68

Multiple Choice

In a controlled laboratory environment, a random sample of 10 adults and a random sample of 10 children were tested by a psychologist to determine the room temperature that each person finds
Most comfortable. The data are summarized below: $\begin{array}{lcc}\hline & \text { Sample Mean } & \text { Sample Variance } \\\hline \text { Adults (1) } & 77.5^{\circ} \mathrm{F} & 4.5 \\\text { Children (2) } & 74.5^{\circ} \mathrm{F} & 2.5 \\\hline\end{array}$

If the psychologist wished to test the hypothesis that children prefer warmer room temperatures than adults, which set of hypotheses would he use?

• A) \(H _ { 0 } : \left( \mu _ { 1 } - \mu _ { 2 } \right) = 0\) vs. \(H _ { 0 } : \left( \mu _ { 1 } - \mu _ { 2 } \right) = 0\)
• B) \(H _ { 0 } : \left( \mu _ { 1 } - \mu _ { 2 } \right) = 0\) vs. \(H _ { 0 } : \left( \mu _ { 1 } - \mu _ { 2 } \right) < 0\)
• C) \(H _ { 0 } : \left( \mu _ { 1 } - \mu _ { 2 } \right) = 3\) vs. \(H _ { 0 } : \left( \mu _ { 1 } - \mu _ { 2 } \right) \neq 0\)
• D) \(H _ { 0 } : \left( \mu _ { 1 } - \mu _ { 2 } \right) = 0\) vs. \(H _ { 0 } : \left( \mu _ { 1 } - \mu _ { 2 } \right) > 0\)

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Definitions:

Opportunity Cost

The worth of the best alternative given up as a consequence of a decision made.

Utility

The subjective benefit or satisfaction a person expects from a choice or course of action.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of making choices.

Economizing Behavior

The practice of seeking to achieve maximum utility with limited resources, leading to optimal decision making.