The Boston Public School District Has Had Difficulty Maintaining On-Time

question 43

Multiple Choice

The Boston public school district has had difficulty maintaining on-time bus service for its students ("A Year Later,School Buses Still Late," Boston Globe,October 5,2011) .Suppose the district develops a new bus schedule to help combat chronic lateness on a particularly woeful route.Historically,the bus service on the route has been,on average,12 minutes late.After the schedule adjustment,the first 36 runs were an average of eight minutes late.As a result,the Boston public school district claimed that the schedule adjustment was an improvement-students were not as late.Assume a population standard deviation for bus arrival time of 12 minutes.At the 5% significance level,does the evidence support the Boston public school district's claim?

• A) No,because the p-value is less thanα.
• B) Yes,because the p-value is less than α.
• C) No,because the value of the test statistic is greater than the critical value.
• D) Yes,because the value of the test statistic is greater than the critical value.

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Definitions:

Marginal Firm

A business that operates at the minimum level of profitability where any decrease in market prices would cause it to exit the market.

Accounting Profits

Accounting profits represent the financial gains of a business as calculated by revenue minus explicit costs, according to standard accounting practices.

Profit-Maximizing

A method or strategy that firms use to achieve the highest possible profit from their operations.

Economic Profit

The variance between a company's overall income and its opportunity expenses, covering both direct and indirect costs.