Recently,a Major Tire Manufacturer Stated in Its Advertising That Its

question 113

Multiple Choice

Recently,a major tire manufacturer stated in its advertising that its tires with a new tire tread design will last more than 50,000 miles on average.A consumer agency collected a subset of these tires and tested them in very controlled conditions.Based on this test,the agency concluded that the manufacturer was justified in making this claim.The process described is an example of:

• A)descriptive statistics.
• B)hypothesis testing.
• C)statistical inference.
• D)Both B and C are correct.

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Definitions:

Opportunity Cost

The disqualification of possible advantages obtainable from other scenarios when one is embraced.

Motorcycles

Two-wheeled motor vehicles that are often used for transportation, recreation, or sport, known for their maneuverability and speed.

Hybrid Cars

Vehicles powered by a combination of an internal combustion engine and one or more electric motors, using energy stored in batteries.

Opportunity Cost

Opportunity Cost is the value of the next best alternative foregone as the result of making a decision.