The Owner of a Local Nightclub Has Recently Surveyed a Random

question 35

Multiple Choice

The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the club. She would now like to determine whether or not the mean age of her customers is greater than 30. If so, she plans to alter the entertainment to appeal to an older crowd. If not, no entertainment changes will be made. The appropriate hypotheses to test are:

• A) H₀: μ ≥ 30 versus H₁: μ < 30.
• B) H₀: μ ≤ 30 versus H₁: μ > 30.
• C) H₀: ≥ 30 versus H₁: < 30.
• D) H₀: ≤ 30 versus H₁: > 30.

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Definitions:

Equilibrium Price

Equilibrium Price is the market price at which the quantity of goods supplied equals the quantity of goods demanded.

Shortage

A scenario in which the need for a product or service surpasses the amount available at a particular price.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period of time.

Law Of Demand

A fundamental economic principle stating that, all else being equal, as the price of a good or service decreases, consumer demand for it will increase, and vice versa.