A Market Research Company Claims That 25% of All Customers

question 117

Multiple Choice

A market research company claims that 25% of all customers to a department store visit the shoe department. Suppose a department store conducts its own survey and finds that 79 out of 384 customers visit the shoe department.
-How much evidence do we have to reject the null hypothesis in favour of the alternative hypothesis?

• A)No evidence
• B)Some evidence
• C)Strong evidence
• D)Very strong evidence
• E)Extremely strong evidence

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Definitions:

Economic Profits

The distinction in a company's finances that results from deducting both tangible and intangible costs from the total revenue.

Perfectly Competitive Industry

Describes a market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller has control over prices.

Variable Input

An input whose quantity the firm can vary at any time (for example, labor).

Long-Run Equilibrium

A state where all factors of production are variable, leading to the optimal distribution of resources in the market.