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Test the Claim That σ2=34.4 if n=12, s2=28.8 and α=0.05\sigma ^ { 2 } = 34.4 \text { if } \mathrm { n } = 12 , \mathrm {~s} ^ { 2 } = 28.8 \text { and } \alpha = 0.05 \text {. }

question 88

Essay

Test the claim that σ2=34.4 if n=12, s2=28.8 and α=0.05\sigma ^ { 2 } = 34.4 \text { if } \mathrm { n } = 12 , \mathrm {~s} ^ { 2 } = 28.8 \text { and } \alpha = 0.05 \text {. } Assume that the population is normally
distributed.


Definitions:

Constant Returns to Scale

A situation in production where increasing all inputs by a certain proportion results in output increasing by the same proportion.

Price-taker Industry

Industries where firms have no control over the market price and must accept the prevailing prices as given.

Short-run Market Supply

The total quantity of goods or services that producers are willing and able to sell at a given price in the market over a short period.

MC Curves

A graphical representation of how the marginal cost of producing one additional unit of a good varies with the quantity produced.

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