Which of the Following Illustrates the Correct Expression of the Alternate

question 26

Multiple Choice

Which of the following illustrates the correct expression of the alternate hypothesis that customers of McDonald's consume more than the national average of 36 hamburgers each year?

• A) H₀: π ≤ 36
• B) H_A: π > 36
• C) H₀: µ = 36
• D) H_A: µ ≠ 36
• E) H_A: µ > 36

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Definitions:

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be positive or negative.

Diminishing Utility

A principle in economics that as consumption of a good or service increases, the marginal utility derived from each additional unit decreases.

Fed

Short for the Federal Reserve, which is the central banking system of the United States, responsible for monetary policy.

Externalities

Costs or benefits that affect parties who did not choose to incur that cost or benefit, often leading to market failure if unaddressed.