An Engineer Designs an Improved Light Bulb

question 11

Multiple Choice

An engineer designs an improved light bulb. The previous design had an average lifetime of 1200 hours. The new bulb had a lifetime of 1200.2 hours, using a sample of 40,000 bulbs. Although the difference is quite small, the effect was statistically significant. The most likely explanation is

• A) that new designs typically have more variability than standard designs.
• B) that the sample size is very large.
• C) that the mean of 1200 is large.
• D) All of the answer choices are very likely explanations.

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Definitions:

Share Capital

The total amount of money that a company has raised from investors through the sale of shares.

Corporation Acts

Laws and regulations that govern the formation, operation, and dissolution of corporations.

Market Capitalization

The total value of a company's outstanding shares of stock, calculated by multiplying the current market price of one share by the total number of shares.

Authorized Shares

The highest number of shares a company is permitted to issue according to its articles of incorporation.