The Next Questions Are Based on the Following Information

question 133

Multiple Choice

The Next Questions Are Based On The Following Information:
The state lottery office claims that the average household income of those people playing the lottery is at least $37,000.Assume that the distribution of household income of those people playing the lottery is normally distributed with a standard deviation of $5,756.Suppose that for a sample of 25 households,it is found that the average income was $36,243.
-What are the appropriate null and alternative hypotheses?

• A)H₀ : μ = $37,000 and H₁ : μ > $37,000
• B)H₀ : μ = $37,000 and H₁ : μ ≠ $37,000
• C)H₀ : μ = $37,000 and H₁ : μ < $37,000
• D)H₀ : μ > $37,000 and H₁ : μ ≤ $37,000

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Definitions:

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance.

Variable Cost

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.

Break-Even Analysis

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output.

Price-Setting Process

The method used by businesses to determine the selling price of their products or services, taking into account production costs, market demand, competition, and profit margins.