A Recent Study Conducted by the State Government Attempts to Determine

question 90

Multiple Choice

A recent study conducted by the state government attempts to determine whether the voting public supports a further increase in cigarette taxes. The opinion poll recently sampled 1,500 voting age citizens. 1,020 of the sampled citizens were in favor of an increase in cigarette taxes. The state government would like to decide if there is enough evidence to establish whether the proportion of citizens supporting an increase in cigarette taxes is significantly greater than .66. Identify the null hypothesis.

• A) p ≠ .66
• B) p > .66
• C) p ≤ .66

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a balance in the market.

Consumer Preference

The inclination of consumers toward certain products or services over others based on their characteristics, such as taste, quality, and price.

Equilibrium

An equilibrium in the market where demand matches supply, thereby stabilizing prices.