Use the Traditional Method to Test the Given Hypothesis

question 5

Essay

Use the traditional method to test the given hypothesis. Assume that the samples are independent and that they have been randomly selected
- $$\begin{array}{l}\text { Use the given sample data to test the claim that p1 } > \text { p2. Use a significance level of } 0.01 \text {. }\\\begin{array} { l l } { \underline{\text { Sample } 1 }}& \underline{\text { Sample } 2} \\n _ { 1 } = 85 &\mathrm { n } _ { 2 } = 90 \\\mathrm { x } _ { 1 } = 38 & \mathrm { x } _ { 2 } = 23\end{array}\end{array}$$

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Definitions:

Long Run

A period in economics in which all factors of production and costs are variable, allowing for full adjustment to change.

Marginal Cost

The increase in total cost that arises from an extra unit of production.

Total Revenues

Total Revenues refer to the total receipts from sales of goods or services by a company before any expenses are subtracted.

Fixed Costs

These stay the same no matter how much output changes.