Exhibit 11-5

question 81

Multiple Choice

Exhibit 11-5.Amie Jackson,a manager at Sigma travel services,makes every effort to ensure that customers attempting to make online reservations do not have to wait too long to complete the reservation process.The travel website is open for reservations 24 hours a day,and Amie regularly checks the website for the waiting time to maintain consistency in service.She uses the following independently drawn samples of wait time during two peak hours,morning 8 am to 10 am and evening 7 pm to 9 pm,for the analysis.Assume that wait times are normally distributed. Refer to Exhibit 11-5.Construct a 90% confidence interval and test if the ratio of the population variances differs from one at the 10% significance level.Which of the following outcomes supports the test?

• A)[1.47,5.99].The ratio of the population variances differs from one at the 10% significance level.
• B)[1.19,7.35].The ratio of the population variances differs from one at the 10% significance level.
• C)[1.47,5.99].The ratio of the population variances does not differ from one at the 10% significance level.
• D)[1.19,7.35].The ratio of the population variances does not differ from one at the 10% significance level.

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Definitions:

High Barriers to Entry

Conditions that make it difficult for new competitors to enter a market, including high costs, strict regulations, or established brands.

Low Power of Suppliers

A business situation where suppliers have little control over the pricing and terms of products being supplied, enhancing the bargaining power of the purchasing company.

Hypercompetition

An extremely competitive business environment characterized by rapid and constant changes in technology, customer preferences, and market dynamics.

Attractive Industry

A sector of the economy that offers significant opportunities for investment, growth, and profitability, making it appealing to businesses and investors.