The EPA Has Stipulated That the Pollution Standard Index (PSI)for

question 16

Multiple Choice

The EPA has stipulated that the Pollution Standard Index (PSI) for clean air standards is to average no more than 100.A random sample of 9 days for the city of Acorn showed PSI readings of 144,85,90,120,150,105,93,130,and 115.Assume the population of PSI readings is highly nonnormal.The EPA wants to determine if there is significant evidence to conclude that Acorn's air is dirtier than the stipulated clean air standards.Which one of the following tests is appropriate for this problem?

• A) Wilcoxon signed ranks test
• B) Wilcoxon rank sum test
• C) sign test
• D) Kruskal-Wallis test
• E) Spearman's rank correlation test

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Definitions:

Average Product

Output per unit of a particular input.

Perfect Competitor

An idealized firm that has no market power and operates in a market with many buyers and sellers where all have perfect information.

Income Effect

It refers to the change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Utility Maximizing

A concept in economics that refers to the idea that individuals choose to allocate their resources in a way that maximizes their utility or satisfaction.