A Pawn Shop Claims to Sell Used Kindles for About

question 62

Multiple Choice

A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay. Both online retailers sell used Kindles for around $150. Below are recent Kindle sales prices for the pawn shop. Which of the following are the competing hypotheses to determine if the median sale price is greater than $150?

• A) H₀: m ≤ 150; H_A: m > 150
• B) H₀: m ≥ 150; H_A: m < 150
• C) H₀: m ≠ 150; H_A: m = 150
• D) H₀: m = 150; H_A: m ≠ 150

---

Definitions:

Scientific Inquiry

A systematic process of investigating natural phenomena through observation, experimentation, and data analysis.

Intuition

The capacity to grasp concepts instantaneously, without relying on deliberate thought.

Overconfident

A psychological condition where an individual's belief in their own abilities or chances of success exceeds reality.

Hindsight Bias

The inclination to think that one could have predicted an outcome after it has occurred, commonly known as the "I-knew-it-all-along" effect.