A Local Consumer Reporter Wants to Compare the Average Costs

question 45

Multiple Choice

A local consumer reporter wants to compare the average costs of grocery items purchased at three different supermarkets, A, B, and C. Prices (in dollars) were recorded for a sample of 60 randomly
Selected grocery items at each of the three supermarkets. In order to reduce item-to-item variation,
The prices were recorded for each item on the same day at each supermarket. The results of a Bonferroni analysis are summarized below.
$\begin{array} { l c c c } \text { Supermarket } & \text { A } & \overline { \text { B } } & \mathrm { C } \\ \text { Mean Price } & 1.665 & 1.919 & 1.925 \end{array}$
Interpret the Bonferroni analysis results.

• A) B and C have significantly different mean prices.
• B) A has a significantly smaller mean price than either of the other two supermarkets.
• C) A has a significantly larger mean price than either of the other two supermarkets.
• D) C has a significantly larger mean price than either of the other two supermarkets.

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Definitions:

Profit-Maximizing Level

The point at which a business achieves the highest profit, with costs minimized and revenue maximized.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Total Cost

The overall amount of money spent on production, which includes both fixed and variable expenses.

Market Price

The prevailing market rate at which a service or asset is offered for purchase or sale.