Maureen McIlvoy, Owner and CEO of a Mail Order Business $\alpha$

question 26

Multiple Choice

Maureen McIlvoy, owner and CEO of a mail order business for wind surfing equipment and supplies, is reviewing the order filling operations at her warehouses. Her goal is 100% of orders shipped within 24 hours. In previous years, neither warehouse has achieved the goal, but the East Coast Warehouse has consistently out-performed the West Coast Warehouse. Her staff randomly selected 200 orders from the West Coast Warehouse (population 1) and 400 orders from the East Coast Warehouse (population 2) , and reports that 190 of the West Coast Orders were shipped within 24 hours, and the East Coast Warehouse shipped 356 orders within 24 hours. Assuming $\alpha$ = 0.05, the appropriate decision is ___.

• A) reject the null hypothesis π₁ - π₂ = 0
• B) reject the null hypothesis \(\mu\)₁ - \(\mu\)₂ ≤ 0
• C) do not reject the null hypothesis \(\mu\)₁ - \(\mu\)₂ = 0
• D) do not reject the null hypothesis π₁ - π₂ = 0
• E) do not reject the null hypothesis π₁ - π₂ ≥ 0

Recognize the importance of mutual interdependence in oligopolistic markets.

Understand the impact of market structure on pricing and output decisions.

Identify examples of oligopolistic industries.

Understand the role of concentration ratios and the Herfindahl index in measuring market concentration.

---

Definitions:

Red Herring

A preliminary prospectus filed by a company with the SEC, usually in connection with an initial public offering (IPO), that is subject to amendment.

Rights Offerings

An offer made by a company to its shareholders to purchase additional shares directly from the company at a specified price and within a specific time period.

Pure Rights Offerings

A method of raising capital in which a company offers existing shareholders the right to purchase additional shares directly, usually at a discount.

Price Drop

A decrease in the price of a commodity, security, or other financial instrument, often reflecting changes in demand and supply.