Suppose You Want to Test the Claim That $\mu _ { 1 } = \mu _ { 2 } .$

question 48

Multiple Choice

Suppose you want to test the claim that $\mu _ { 1 } = \mu _ { 2 } .$ Two samples are random, independent, and come from populations that are normally distributed. The sample statistics are given below. Assume that $\sigma _ { 1 } ^ { 2 } = \sigma _ { 2 } ^ { 2 }$ At a
Level of significance of α $\alpha = 0.05$ when should you reject H₀? $$\begin{array} { l l } \mathrm { n } _ { 1 } = 14 & \mathrm { n } _ { 2 } = 12 \\\overline { \mathrm { x } } _ { 1 } = 21 & \overline { \mathrm { x } _ { 2 }} = 22 \\\mathrm {~s} _ { 1 } = 2.5 & \mathrm {~s} _ { 2 } = 2.8\end{array}$$

• A)Reject H₀ if the standardized test statistic is less than -2.064 or greater than 2.064.
• B)Reject H₀ if the standardized test statistic is less than -2.492 or greater than 2.492
• C)Reject H₀ if the standardized test statistic is less than -1.711 or greater than 1.711.
• D)Reject H₀ if the standardized test statistic is less than -1.318 or greater than 1.318.

Differentiate between elastic and inelastic demand

Recognize the factors making demand more elastic or inelastic

Understand the role of advertising in shaping demand elasticity

Learn the effects of price changes on total revenue depending on elasticity

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