Table 14-3 There Are Two Mobile Home Manufacturers in Nevada,Sturdy

question 116

Multiple Choice

Table 14-3 There are two mobile home manufacturers in Nevada,Sturdy Homes (S) and My Haven (M) .Sturdy Homes has been in the market for a long time and must now compete with newcomer,My Haven.Suppose that Sturdy Homes believes that My Haven will match any price it sets.Use Table 14-3 to answer the following question and assume throughout that Sturdy Homes believes that My Haven will match any price it sets.
-Refer to Table 14-3.What price will Sturdy Homes charge and what profit does Sturdy Homes expect to make?

• A)Price = $8,000; expected profit = $7 million
• B)Price = $8,000; expected profit = $4 million
• C)Price = $10,000; expected profit = $5 million
• D)Price = $12,000; expected profit = $3 million

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Definitions:

Proportion

A part, share, or number considered in comparative relation to a whole; a statistical term referring to the ratio of one part to the whole.

Null Hypothesis

A hypothesis in statistical testing that proposes no statistical significance exists in a set of given observations.

Chi-square Test

A statistical test used to determine the association between categorical variables, measuring how expectations compare to actual observed data.

Proportion

In statistics, it measures the part or fraction of the total that exhibits a specific trait or characteristic.