According to a Recent Poll 53% of Americans Would Vote

question 43

Multiple Choice

According to a recent poll 53% of Americans would vote for the incumbent president. If a random sample of 100 people results in 45% who would vote for the incumbent, test the hypothesis that the actual percentage is 53%. Use a 0.10 significance level and a two-tailed test.

• A) Do not reject the null hypothesis. There is insufficient evidence to reject the claim that 53% of Americans would vote for the incumbent president.
• B) Do not reject the null hypothesis. There is sufficient evidence to support the claim that 53% of Americans would vote for the incumbent president.
• C) Reject the null hypothesis. There is sufficient evidence to reject the claim that 53% of Americans would vote for the incumbent president.
• D) Reject the null hypothesis. There is insufficient evidence to support the claim that 53% of Americans would vote for the incumbent president.

Understand the calculation and interpretation of economic profit and loss.

Analyze the impact of fixed and variable costs on a firm's decision-making process.

Apply the concepts of average total cost, average variable cost, and marginal cost in making production decisions.

Differentiate between short-run and long-run decision-making for firms in perfectly competitive markets.

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Definitions:

Margin Of Safety

The difference between actual or projected sales and the sales level at which the business doesn't incur any loss but doesn't make a profit either.

Contribution Format

A type of income statement formatting that separates fixed and variable costs, helping to analyze the impact of sales volume on net income.

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues, excluding non-operating income and expenses.

Contribution Margin Ratio

The percentage of each sales dollar that contributes toward covering fixed costs and generating profit.