A Pawn Shop Claims to Sell Used Kindles for About

question 108

Multiple Choice

A pawn shop claims to sell used Kindles for about the same price as Amazon or eBay.Both online retailers sell used Kindles for around $150.Below are recent Kindle sales prices for the pawn shop. Using the p-value approach and α = 0.05,the appropriate conclusion is ______________________________________.

• A) to reject the null hypothesis;we cannot conclude the median sale price is greater than $150
• B) do not reject the null hypothesis;we cannot conclude the median sale price is greater than $150
• C) do not reject the null hypothesis;conclude the median sale price is greater than $150
• D) reject the null hypothesis;conclude the median sale price is greater than $150

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Definitions:

Short Run

in economics, refers to a period during which at least one input, such as plant size, is fixed and cannot be changed.

Long Run

A period of time in economics where all factors of production and costs are variable, allowing for complete adjustment to changes in market conditions.

Fixed Resource

An asset or input whose quantity cannot be altered in the short run for the production of goods and services.

Explicit Costs

Direct, out-of-pocket payments for inputs or resources used by a business, easily identifiable and recorded.