Exhibit 20

question 37

Multiple Choice

Exhibit 20.13.An energy analyst wants to test if U.S.oil production is random over time.The analyst has monthly production values for the two years.The analyst finds 12 months are above the median,12 months are below the median,6 runs are below the median,and 5 runs are above the median. Refer to Exhibit 20.13.Using the p-value approach and ,the appropriate conclusion is:

• A)Do not reject the null hypothesis,conclude oil production is not random
• B)Reject the null hypothesis,conclude oil production is not random
• C)Reject the null hypothesis,conclude oil production is random
• D)Do not reject the null hypothesis,cannot conclude oil production is not random

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Definitions:

Maximin Strategy

In decision-making and game theory, a strategy which maximizes the minimum gain that can be achieved, focusing on the most favorable outcome of the worst possible scenarios.

Entry-Deterrence

Strategies employed by existing firms in a market to prevent or discourage new competitors from entering the market.

Sunk Costs

Expenses that have already been incurred and cannot be recovered, often considered in decision-making processes.

Price War

A competitive strategy in which retailers reduce prices to gain business, often leading to lower profit margins for the competitors.