A Consumer Group Plans to Test Whether a New Passenger

question 36

Multiple Choice

A consumer group plans to test whether a new passenger car that is advertised to have a mean highway miles per gallon of at least 33 actually meets this level. They plan to test the hypothesis using a significance level of 0.05 and a sample size of n = 100 cars. It is believed that the population standard deviation is 3 mpg. Based upon this information, what is the critical value in terms of miles per gallon that would be needed prior to finding beta?

• A) 32.5065
• B) 33.4935
• C) 33.588
• D) 32.412

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Definitions:

National Security

The protection and preservation of a nation's sovereignty, territorial integrity, and well-being from external and internal threats.

Consumer Surplus

The variance between the aggregate amount consumers can and will offer for a good or service compared to the aggregate amount they actually pay.

Price Floor

A government-imposed limit on how low a price can be charged for a product or service.

Price Floors

A government- or authority-imposed minimum price that can be charged for a commodity, which is typically set above the equilibrium price to protect producers.