The Next Questions Are Based on the Following Information

question 150

Multiple Choice

The Next Questions Are Based On The Following Information:
The manufacturer of a new chewing gum claims that at least 80% of dentists surveyed prefer their type of gum and recommend it for their patients who chew gum.An independent consumer research firm decides to test their claim.The findings in a sample of 200 dentists indicate that 74.1% of the respondents do actually prefer their gum.
-What are the null and alternative hypotheses for the test?

• A)H₀ : P ≥ 0.80 and H₁ : P < 0.80
• B)H₀ : P = 0.80 and H₁ : P ≠ 0.80
• C)H₀ : P ≤ 0.80 and H₁ : P > 0.80
• D)H₀ : P > 0.80 and H₁ : P ≤ 0.80

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Definitions:

MPC

MPC, or Marginal Propensity to Consume, is the proportion of additional income that an individual spends on consumption.

APC

Average Propensity to Consume, the fraction of income that households spend on consumption as opposed to saving.

MPS

An acronym that can stand for multiple financial and economic terms, such as Marginal Propensity to Save, which indicates the fraction of additional income that a household saves.

45-Degree Line

In economics, a line on a graph that shows where the value of the goods and services produced in an economy equals the total income earned in that same economy.