THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 122

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A large department store records the number of returns per day in women's dresses for reasons such as wrong size;husband didn't like it,color,etc.The manager of the women's dresses department recalls from her statistics class in college that the Poisson distribution might describe such events.A random sample of 150 days is taken.The number of returns per day in the sample as well as the observed frequencies is shown in the table below:

She tests the hypothesis that returns per day are Poisson distributed with a population mean equal to 1.90.Her significance level is 0.05
-State the appropriate conclusion at the 0.05 significance level.

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Definitions:

Profit-Maximizing

A strategy or process by which a business aims to achieve the highest possible profits from its operations.

Market Price

The contemporary pricing at which a commodity or service is offered for exchange in the open market.

Economic Profits

The surplus remaining after deducting both explicit and implicit costs from total revenues, often indicating the profitability beyond normal returns.

Competitive Market

A market structure characterized by numerous buyers and sellers, such that no single market participant has the power to significantly influence prices.