The Manager of an Online Shop Wants to Determine Whether

question 68

Multiple Choice

The manager of an online shop wants to determine whether the mean length of calling time of its customers is significantly more than 3 minutes. A random sample of 100 customers was taken. The average length of calling time in the sample was 3.1 minutes with a standard deviation of 0.5 minutes. At a 0.05 level of significance, it can be concluded that the mean of the population is:

• A) significantly greater than 3.
• B) not significantly greater than 3.
• C) significantly less than 3.
• D) not significantly different from 3.10.

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Definitions:

Income Elasticity

A measure of how much the demand for a good responds to a change in consumers' income.

Total Revenue

The total income generated by a firm from the sale of goods or services before any costs or expenses are subtracted.

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in consumer income.

Demand Increase

A situation where the quantity of a product or service that consumers are willing and able to buy at a given price rises.