Alumni Clubs
Three Alumni Clubs for a University Have Members

question 133

Short Answer

Alumni clubs
Three alumni clubs for a university have members who contribute to the university athletic program.The amount of contribution (in dollars)for six contributors randomly selected from each city to test the hypothesis that the mean contribution is the same among alumni clubs is given below,followed by the total for each city: $$\begin{array} { | l | l | l | } \hline { \text { Banks } } & { \text { Business Services } } & { \text { Construction } } \\\hline n _ { 1 } = 7 & n _ { 2 } = 7 & n _ { 3 } = 7 \\\bar { x } _ { 1 } = 41 & \bar { x } _ { 2 } = 30 & \bar { x } _ { 3 } = 24 \\\sum _ { i = 1 } ^ { n _ { 1 } } \left( x _ { 1 } - \bar { x } _ { 1 } \right) ^ { 2 } = 882 & \sum _ { i = 1 } ^ { n _ { 2 } } \left( x _ { i 2 } - \bar { x } _ { 2 } \right) ^ { 2 } = 1266 & \sum _ { i = 1 } ^ { n _ { 1 } } \left( x _ { i 3 } - \bar { x } _ { 3 } \right) ^ { 2 } = 582 \\\hline\end{array}$$
-Compute the appropriate table value to use as the critical value at the 5% significance level.

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Definitions:

Positive Economic Profits

The situation in which a firm's total revenues exceed its total costs, including both explicit and implicit costs, signaling that the firm is doing better than the next best alternative.

Profit

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Monopolistically Competitive Firm

A company that operates in a market with many competitors, each offering products that are similar but not identical, allowing for some degree of market power.

Price Higher Than Marginal Cost

A situation where the selling price of a product is set above the marginal cost of production, often leading to increased profitability but potentially distorting market efficiency.