Consider the Following to Answer the Question(s) Below

question 30

Multiple Choice

Consider the following to answer the question(s) below:
A consumer group was interested in comparing the operating time of cordless toothbrushes manufactured by two different companies. They took a random sample of 18 toothbrushes from Company A and 15 from Company B. Each was charged overnight and the number of hours of use before needing to be recharged was recorded. Company A toothbrushes operated for an average of 119.7 hours with a standard deviation of 1.74 hours; Company B toothbrushes operated for an average of 120.6 hours with a standard deviation of 1.72 hours. Do these samples indicate that Company B toothbrushes operate more hours on average than Company A toothbrushes?
-At α = 0.05,

• A) we reject the null hypothesis.
• B) we fail to reject the alternative hypothesis.
• C) we can conclude that there is significant difference between the mean operating times of cordless toothbrushes manufactured by the two companies.
• D) we fail to reject the null hypothesis. There is not enough evidence to indicate that Company B cordless toothbrushes operate longer, on average, than those of Company A.
• E) we fail to reject the alternative hypothesis. There is strong evidence indicating that Company B cordless toothbrushes operate longer on average than those of Company A.

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Definitions:

Marginal Cost

The supplementary cost derived from creating an additional good or service unit.

Pure Monopolist

An entity that is the sole provider of a product or service in a market, with no close substitutes, allowing for control over prices.

Nondiscriminating Pure Monopolist

A monopolistic market structure where a single seller offers a product to all consumers at the same price without price discrimination.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the additional value created beyond the opportunity cost.