A Coffee-Dispensing Machine Is Supposed to Deliver 8 Ounces of Liquid

question 23

Multiple Choice

A coffee-dispensing machine is supposed to deliver 8 ounces of liquid into each paper cup,but a consumer believes that the actual mean amount is less.The consumer obtained a sample of 16 cups of the dispensed liquid with sample mean of 7.75 ounces and sample variance of 0.81 ounces. If the dispensed liquid delivered per cup is normally distributed,the appropriate decision at α = 0.05 is

• A) increase the sample size
• B) reduce the sample size
• C) fail to reject the 8-ounces claim
• D) maintain status quo
• E) reject the 8-ounces claim

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Definitions:

Laissez-Faire Economy

An economic system where transactions between private parties are free from government intervention such as regulation, privileges, tariffs, and subsidies.

Self-Interest

A principle that assumes individuals make decisions that they perceive to be in their own best advantage, often equated with rational behavior.

Investment

The allocation of resources, such as capital or time, in expectation of future returns, typically in the form of profit, interest, or appreciation in value.

Stocks and Bonds

Financial instruments representing ownership in a company (stocks) and debt obligations issued by entities (bonds), respectively, used for investment purposes.