The Candy Company That Makes M&M's Claims That 10% of the M&M's

question 54

Multiple Choice

The candy company that makes M&M's claims that 10% of the M&M's it produces is green.Suppose that the candies are packaged at random in large bags of 200 M&M's.When we randomly pick a bag of M&M's,we may assume that this represents a simple random sample of size n = 200.Suppose we wish to test H₀: p = 0.10 versus H_a: p  0.10.Under the null hypothesis,what is the value of the standard error of ,the sample proportion of green M&M's in a bag of 200?

• A)0.0015
• B)0.021
• C)0.09
• D)18

---

Definitions:

Profitable

A financial status where the income or revenue generated exceeds the costs or expenses, resulting in a financial gain.

Natural Monopoly

A market where a single supplier can produce output at a lower cost than multiple competitors, often due to economies of scale.

Increasing Returns

A situation where the input in a production process is increased and the output increases at a proportionally higher rate.

Price Discrimination

Charging different prices to different consumers for the same good.