The Manager of a Grocery Store Wants to Determine Whether

question 196

Multiple Choice

The manager of a grocery store wants to determine whether the amount of water contained in a 1L bottle purchased from a known manufacturer actually averages to 1L. It is known from the manufacturer's specifications that the standard deviation of the amount of water is equal to 0.02L. A random sample of 32 bottles is selected, and the mean amount of water per 1L bottle is found to be 0.995L.
-The null and alternative hypotheses to test that the manufacturer's claim is false is _____.

• A)H₀: µ ≤ .995 H_a: µ > .995
• B)H₀: µ ≠ 1 H_a: µ = 1
• C)H₀: µ ≥ 1 H_a: µ < 1
• D)H₀: µ = 1 H_a: µ ≠ 1
• E)H₀: µ ≤ 1 H_a: µ > 1

---

Definitions:

Monopolistically Competitive

Describes a market structure where many firms sell products that are similar but not identical, allowing for differentiation and some degree of market power.

Monopolistically Competitive

A market structure characterized by many firms selling products that are similar but not identical, leading to some degree of market power and differentiation.

Profit Maximization

The process or strategy employed by businesses aiming to achieve the highest possible profit, where marginal costs equal marginal revenues.