Soft Drink A Soft Drink Dispenser Is Set to Automatically Dispense Drinks

question 29

Essay

Soft drink
A soft drink dispenser is set to automatically dispense drinks and ice in 8 oz.cups.The machine is set to fill the cups with 7 1/4 oz.so that the liquid will not run over the top of the cup.The company is getting complaints that the machine is filling the cups too full and spilling over.When the machine is operating properly,only 1% of the cups will not be filled properly.The production manager conducted a one-tail hypothesis test at the 0.01 level to check the machine.A sample of 50 fills was measured.
-What are the appropriate hypotheses?

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Definitions:

Perfectly Competitive

In a perfectly competitive market, there are many buyers and sellers, the products are homogenous, and no single entity can influence the market price.

Demand Rises

Occurs when there is an increase in the quantity of a good or service that consumers are willing and able to purchase at a given price.

Economic Profit

The disparity measure in between overall returns and full expenses, including both exposed and indirect costs.

Market Supply

The total amount of a product that sellers are willing and able to sell across all relevant price levels within a given market.