Vending Machines on a College Campus Offer a Variety of Snacks

question 11

Essay

Vending machines on a college campus offer a variety of snacks. The purchasing
agent believes that each type of snack is equally preferred by students and consequently
orders equal quantities. The number of snacks sold from vending machines on this
campus for the last six months is shown in the following table. $$\begin{array} { | c | c | c | c | c | } \hline \text { Snack Type } & \text { Chips } & \text { Candy Bars } & \text { Crackers } & \text { Nuts } \\\hline \text { Purchase Frequency } & 159 & 198 & 174 & 149 \\\hline\end{array}$$
A. State appropriate hypotheses to test whether the purchasing agent is correct.
b. What is the value of the test statistic and its associated P-value?
c. State the conclusion at α = .05.

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Definitions:

Moral Hazard

The situation in which one party takes additional risks because they know they will not bear the full consequences of their actions.

Adverse Selection

A situation where sellers have more information than buyers, leading to high-quality goods and services being squeezed out of the market because they cannot be adequately priced.

Private Information

Information that some people have, but others do not.

Economic Decisions

Choices made by individuals, businesses, or governments involving the allocation of resources to satisfy their needs and desires.