A Machine Fills 12-Ounce Bottles with Soda

question 2

Multiple Choice

A machine fills 12-ounce bottles with soda. For the machine to function properly, the standard deviation of the sample must be less than or equal to 0.02 ounce. A sample of 8 bottles is selected, and the number of ounces of soda in each bottle is given. At , can you reject the claim that the machine is functioning properly? Justify your answer. (Assume that the variables are approximately normally distributed.)

• A) , ; There is evidence to reject the claim that the machine is working properly.
• B) , ; There is evidence to reject the claim that the machine is working properly.
• C) , ; There is not enough evidence to reject the claim that the machine is working properly.
• D) , ; There is evidence to reject the claim that the machine is working properly.

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Definitions:

Monopoly Sellers

Single sellers in a market with no close substitutes for the product or service they offer, giving them significant control over prices.

Allocative Inefficiency

A situation where resources are not optimally allocated according to consumer preferences, often leading to overproduction or underproduction of certain goods or services.

Monopolist

An entity that has exclusive control over the supply of a particular good or service, setting prices without facing competition.

Opportunity Cost

The cost of what you have to give up in order to choose something else.