A Company in Maryland Has Developed a Device That Can

question 94

Multiple Choice

A company in Maryland has developed a device that can be attached to car engines,which it believes will increase the miles per gallon that cars will get.The owners are interested in estimating the difference between mean mpg for cars using the device versus those that are not using the device.The following data represent the mpg for independent random samples of cars from each population.The variances are assumed equal and the populations normally distributed. Given this data,what is the critical value if the owners wish to have a 90 percent confidence interval estimate?

• A)t = 2.015
• B)t = 1.7823
• C)z = 1.645
• D)z = 1.96

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price, over a specified period of time.

Equilibrium

A state in which market supply and demand balance each other, and as a result, prices become stable.

Quantity Supplied

The quantity of a product or service that suppliers are ready and capable of offering for sale at a certain price during a defined timeframe.

Equilibrium Price

The equilibrium price is the price at which the quantity of goods suppliers are willing to supply matches the quantity of goods consumers are willing to buy, leading to market equilibrium.