Set Up the Appropriate Hypotheses to Test the Claim That

question 35

Multiple Choice

Set up the appropriate hypotheses to test the claim that less than 40 percent of the residents in this county are protected by earthquake insurance.

• A)H₀: p ≤ .39 vs H_A: p > .39
• B)H₀: p ≥ .40 vs H_A: p < .40
• C)H₀: p ≤ .40 vs H_A: p > .40
• D)H₀: p = .40 vs H_A: p ≠ .40
• E)H₀: p ≠ .40 vs H_A: p = .40

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Definitions:

Diminishing Marginal Utility

The principle that as a person consumes more of a product, there is a decline in the additional satisfaction or utility that person derives from consuming one more unit of the product.

Total Utility

The total satisfaction received by a consumer from consuming a particular quantity of goods or services.

Nth Unit

A term referring to the last or latest unit produced or consumed, often used in economics to analyze marginal costs or benefits.

Diminishing Marginal Utility

A principle stating that as a person consumes more of a good, the additional satisfaction gained from consuming an additional unit decreases.