A Small Business Ships Specialty Homemade Candies to Anywhere in the World

question 20

Multiple Choice

A small business ships specialty homemade candies to anywhere in the world. Past records indicate that the weight of orders is normally distributed. Suppose a random
Sample of 16 orders is selected and each is weighed. The sample mean was found to be
110 grams with a standard deviation of 14 grams. The 90% confidence interval for the
True mean weight of orders is

• A) 103.87 to 116.14 grams.
• B) 86.046 to 133.954 grams.
• C) 99.5 to 120.5 grams.
• D) 102.55 to 117.45 grams.
• E) 103.14 to 116.86 grams.

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Definitions:

Purely Competitive Market

A theoretical market structure characterized by an infinate number of buyers and sellers, homogeneous products, and no barriers to entry or exit.

Consumer Surplus

The distinction between what consumers are willing and able to allocate financially for a good or service, and what they actually allocate.

Purely Competitive Market

A purely competitive market is characterized by many buyers and sellers, homogenous products, and no barriers to entry or exit, leading to price taking behavior by individuals.

Equilibrium

A state of balance where demand and supply in a market are equal, leading to a stable price.