Kara and Kyle Are Competing Sockeye Salmon Fishers

question 149

Multiple Choice

Kara and Kyle are competing sockeye salmon fishers. Both have been allocated ITQs that limit their catch to 2,000 tons of sockeye salmon each. Kara's cost per ton is $7; Kyle's cost per ton is $11. If the market price of sockeye salmon is $16 per ton, what is the minimum amount per ton that Kara would have to offer Kyle to convince him to sell Kara his ITQs?

• A)$6.
• B)$4.
• C)$5.
• D)$9.

Understand and apply the concept of p-value in the context of hypothesis testing.

Formulate null and alternative hypotheses for tests concerning population proportions.

Identify the requirements for using the standard normal distribution in constructing confidence intervals and hypothesis tests for population proportions.

Incorporate the finite population correction factor where applicable in statistical tests and estimates.

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Definitions:

Bayesian Statistics

Statistics that involve a formula for calculating the likelihood of a hypothesis being true and meaningful, taking into account relevant prior knowledge.

Mathematical Statistics

A branch of mathematics dealing with the analysis, interpretation, presentation, and organization of data using statistical theories and methodologies.

Inferential Statistics

Statistical methods that allow researchers to make inferences or generalizations about a population based on a sample.

Representative Sample

A subset of a population that accurately reflects the members of the entire population.