A Soft Drink Filling Machine, When in Perfect Adjustment, Fills $\mu$

question 11

Multiple Choice

A soft drink filling machine, when in perfect adjustment, fills the bottles with 12 ounces of soft drink.Any over-filling or under-filling results in the shutdown and readjustment of the machine.To determine whether the machine is properly adjusted, the most appropriate set of hypotheses is

• A)H₀: \(\mu\)< 12; H_a: \(\mu\) \(\le\)12
• B)H₀: \(\mu\)\(\le\) 12; H_a: \(\mu\) > 12
• C)H₀: \(\mu\) = 12; H_a: \(\mu\) \(\neq\) 12
• D)H₀: \(\mu\) \(\neq\) 12; H_a:\(\mu\) = 12
• E)none of the above

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Definitions:

Marginal Revenue

The supplementary income generated by the sale of an extra unit of a product or service.

Market Entry

The process by which a company enters a new market, confronting challenges such as competition, legal requirements, and customer acquisition.

Economic Profit

The difference between the total revenue generated by a business and the total opportunity costs of all resources used in the production process.

Competitive Price-searcher

A market structure where firms have some degree of market power, allowing them to set prices above marginal cost to seek profits, while still facing competition.