An Advertisement for a Popular Weight-Loss Clinic Suggests That Participants

question 10

Multiple Choice

An advertisement for a popular weight-loss clinic suggests that participants in its new diet program lose, on average, more than 10 pounds. A consumer activist decides to test the authenticity of the claim. She follows the progress of 18 women who recently joined the weight-reduction program. She calculates the mean weight loss of these participants as 10.8 pounds with a standard deviation of 2.4 pounds. Which of the following are appropriate hypotheses to test the advertisement's claim?

• A) H₀: μ < 10, H_A: μ ≥ 10
• B) H₀: μ ≥ 10, H_A: μ < 10
• C) H₀: μ ≤ 10, H_A: μ > 10
• D) H₀: μ = 10, H_A: μ ≠ 10

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Operating Profits

Earnings before interest and tax (EBIT), which is the profit from a business's core operations excluding financing costs and taxes.

Profit Margin

A financial metric used to evaluate a company's profitability, calculated as net income divided by revenue.

COGS/Sales

COGS/Sales is a financial ratio that measures the cost of goods sold against the total sales revenue, often used to assess the efficiency of production.