The Owner of a Large Car Dealership Believes That the Financial

question 42

Multiple Choice

The owner of a large car dealership believes that the financial crisis decreased the number of customers visiting her dealership.The dealership has historically had 800 customers per day.The owner takes a sample of 100 days and finds the average number of customers visiting the dealership per day was 750.Assume that the population standard deviation is 350.At the 5% significance level,the decision is to ___________.

• A) reject H_o;we can conclude that the mean number of customers visiting the dealership is significantly less than 800
• B) reject H_o;we cannot conclude that the mean number of customers visiting the dealership is significantly less than 800
• C) do not reject H_o;we can conclude that the mean number of customers visiting the dealership is significantly less than 800
• D) do not reject H_o;we cannot conclude that the mean number of customers visiting the dealership is significantly less than 800

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Definitions:

Inverted-U Theory

A hypothesis that suggests there is a relationship between the level of some activity and the effect it has on performance, which looks like an inverted U, indicating optimal performance at an intermediate level of the activity.

Technologically Progressive

Pertaining to the consistent application and incorporation of new technologies to improve processes, products, or services.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied responds infinitely to changes in price.

Expected Rates

Predicted percentages or values in various contexts, such as interest rates, growth rates, or return on investment.