A 7,000-Seat Theater Is Interested in Determining Whether There Is

question 57

Multiple Choice

A 7,000-seat theater is interested in determining whether there is a difference in attendance between shows on Tuesday evening and those on Wednesday evening. Two independent samples of 25 weeks are collected for Tuesday and Wednesday. The mean attendance on Tuesday evening is calculated as 5,500, while the mean attendance on Wednesday evening is calculated as 5,850. The known population standard deviation for attendance on Tuesday evening is 550 and the known population standard deviation for attendance on Wednesday evening is 445. Which of the following is the appropriate decision given a 5% level of significance?

• A) Conclude that the mean attendance differs because the p-value = 0.0067 < 0.05.
• B) Conclude that the mean attendance differs because the p-value = 0.0134 < 0.05.
• C) Do not conclude that the mean attendance differs because the p-value = 0.0067 < 0.05.
• D) Do not conclude that the mean attendance differs because the p-value = 0.0134 < 0.05.

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Definitions:

Output

The total amount of goods or services produced by a company, industry, or economy within a specific period.

Additional Unit

Referring to the next or extra unit of a product or service to be produced or consumed, often used in analyses of costs and benefits.

Perfectly Competitive

Describes a market situation where firms sell identical products, there are no barriers to entry or exit, and no single buyer or seller can influence the market price.

Excess Profits

Profits that exceed what is considered normal or expected, often due to favorable market conditions or monopoly power.