An Electronics Retailer Believes That,at Most,40% of Their Cell Phone

question 36

Multiple Choice

An electronics retailer believes that,at most,40% of their cell phone inventory was sold during November. The retailer surveyed 80 dealers and found that 38% of the inventory was sold. Since 38% is less than 40%,is this difference of 2 percentage points sampling error or a significant difference? Test at the 0.05 level. The computed z = −0.37.

• A)The 2% is a significant difference.
• B)We cannot determine if the 2% is a significant difference.
• C)There is not enough information to reach a conclusion.
• D)None of the other answers apply.

---

Definitions:

Market System

A market mechanism where the allocation of resources for investment, production, and distribution is driven by the forces of supply and demand, with the pricing of goods and services set freely within the market.

Minimize Cost

The process of finding the most efficient level of production, where the combination of inputs results in the lowest possible cost.

Unit of Output

The basic measure of productivity or product which is generated by a production process, operation, or project.

Competitive Market Economy

A system where market forces govern the production, distribution, and pricing of goods and services, featuring many buyers and sellers and free entry and exit from the market.