A Fast-Food Franchise Is Considering Building a Restaurant at a Busy

question 81

Multiple Choice

A fast-food franchise is considering building a restaurant at a busy intersection. A financial advisor determines that the site is acceptable only if, on average, more than 300 automobiles pass the location per hour. If the advisor tests the hypotheses H₀: μ ≤ 300 versus H_A: μ > 300, μ stands for ________.

• A) the average number of automobiles that pass the intersection per hour
• B) the number of automobiles that pass the intersection per hour
• C) the proportion of automobiles that pass the intersection per hour
• D) the standard deviation of the number of automobiles that pass the intersection per hour

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Definitions:

Output/Input

A measure of efficiency that compares the quantity or quality of outputs (results, products) generated by a system to the inputs (resources, time) used.

Productivity

The measure of how efficiently resources are used to produce outputs.

Inputs

Resources used in the production process to generate outputs, including raw materials, labor, and capital.

Transformed Into Outputs

The process of converting inputs such as raw materials, labor, and energy into finished goods or services.