The Owner of a Large Car Dealership Believes That the Financial

question 87

Multiple Choice

The owner of a large car dealership believes that the financial crisis decreased the number of customers visiting her dealership. The dealership has historically had 800 customers per day. The owner takes a sample of 100 days and finds the average number of customers visiting the dealership per day was 750. Assume that the population standard deviation is 350. At the 5% significance level, the decision is to ________.

• A) reject H₀; we can conclude that the mean number of customers visiting the dealership is significantly less than 800
• B) reject H₀; we cannot conclude that the mean number of customers visiting the dealership is significantly less than 800
• C) do not reject H₀; we can conclude that the mean number of customers visiting the dealership is significantly less than 800
• D) do not reject H₀; we cannot conclude that the mean number of customers visiting the dealership is significantly less than 800

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Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity of it that producers are willing and able to supply at that price.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in the market, leading to a state of balance.

Economic Theory

A conceptual framework explaining how economies operate, including principles on production, distribution, and consumption of goods and services.

Product Supply

The total amount of a product or service that is available for purchase by consumers at a given price point and time.