In Testing the Difference Between the Means of Two Normal

question 1

Multiple Choice

In testing the difference between the means of two normal populations with known population standard deviations the test statistic calculated from two independent random samples equals 2.56. If the test is two-tailed and the 1% level of significance has been specified, the conclusion should be:

• A)to reject the null hypothesis.
• B)not to reject the null hypothesis.
• C)the test is inconclusive.
• D)None of these choices are correct.

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Definitions:

Average Variable Cost

The total variable costs divided by the quantity of output produced, indicating the variable cost of producing each unit.

Marginal Cost

The price of manufacturing an additional unit of a product or service.

Shutdown

A short-term decision by a company to cease operations due to unfavorable market conditions, aiming to minimize losses.

Short-Run Supply Curve

A graph that shows the relationship between the price of a good and the quantity of that good supplied by producers over a short period, where some inputs are fixed.