Economies of scale will lead to only one firm in the industry because by increasing output a firm is able to lower the cost per unit and charge lower prices driving smaller firms out of business therefore the correct option is D.
Government licensing and entry restrictions can limit the number of firms in an industry, however they are not likely to be the main factor which leading to only one firm in the industry.
The main factor is the economies of scale, which occur when a firm was increases its output such that it also reduces its costs per unit.
Hence the correct option is D.
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A factory is considered what type of resource?
land
labor
physical capital
human capital
A factory falls under the category of physical capital, representing tangible assets and infrastructure utilized in the production process. Option C.
Physical capital refers to the tangible assets that are used in the production process to create goods or services. These assets include machinery, equipment, buildings, vehicles, and infrastructure. They are essential resources that contribute to the production capacity and efficiency of a business or organization.
A factory is a prime example of physical capital as it represents a dedicated space or facility equipped with machinery, tools, and equipment designed for manufacturing or production activities. It provides the necessary infrastructure and resources for transforming raw materials into finished products.
Factories typically house specialized equipment and machinery specific to the industry or production process they serve. This physical capital enables businesses to carry out mass production, streamline operations, and achieve economies of scale.
Physical capital is an important factor of production alongside other resources such as land, labor, and human capital. It plays a crucial role in enhancing productivity, output, and overall economic growth.
Effective management and investment in physical capital can lead to improved efficiency, cost reduction, and technological advancements in production processes.
In summary, a factory is categorized as physical capital, representing the tangible assets and infrastructure used in the production process. So Option C is correct.
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Suppose that the required reserve ratio is 7.00%. What is the simple money (deposit) multiplier? Round to two
decimal places.
Answer:
14.29
Explanation:
Given
Reserve Ratio (R) = 7.00%
Required
Calculate the deposit multiplier (M)
To calculate simple money multiplier (M), we make use of the following formula.
M = 1/R
Where
R represent the reserve ratio
Substitute 7.00% for R
M = 1/7.00%
Convert % to decimals
M = 1/0.07
M = 14.29 ---- Approximated
Hence, the simple money multiplier is 14.29
When an excise tax is imposed on sellers, this will cause the ________ curve to shift __________.
When an excise tax is imposed on sellers, this will cause the supply curve to shift left.
Specifically, the supply curve will shift to the left, meaning that the quantity supplied at each price level will decrease.
This occurs because the tax increases the costs for sellers, reducing their incentive to supply the good or service. To understand this, let's consider an example.
Imagine a market for cigarettes. If the government imposes an excise tax on cigarette sellers, they will now have to pay an additional cost per pack of cigarettes they sell. This increased cost will lead to a decrease in the quantity supplied at each price level. As a result, the supply curve will shift to the left.
This shift in the supply curve has several implications. First, it leads to a higher equilibrium price for the consumers. Second, the quantity demanded and quantity supplied will both decrease. Finally, the burden of the tax will be shared between the buyers and the sellers, depending on the relative elasticities of demand and supply.
In summary, when an excise tax is imposed on sellers, the supply curve shifts to the left, resulting in a decrease in quantity supplied and potentially higher prices for consumers. The burden of the tax is shared between buyers and sellers.
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An investor has 10 units of goods at the start of date 1. At date 1 there are two sorts of assets: government bonds and money. The date-t nominal price of goods is Pt > 0 (i.e., one unit of goods is worth of Pt dollars), t = 1,2; so, in particular, the investor can exchange one unit of goods for P1 dollars at date 1 and use the P1 dollars to buy P1/P2 units of goods at date 2. The bonds are real bonds: one unit of government bonds claims one unit of goods at date 2; these bonds are sold at the (real) price pb > 0 at date 1 (i.e., one unit of bonds is worth of pb units of the date-1 good). From consuming ct at date t, t = 1, 2, the investor’s utility is U(c1,c2) = √c1 +√c2. Let m and b be the units of money and government bonds the investor carries to date 2, respectively.
1. Suppose P1 = 1.1, P2 = 1.0 and 1/pb = 1.1. Find all optimal solutions of (m, b).
m + b = 121 21
2. Suppose P1 = 1.1, P2 = 1.0 and 1/pb = 1. Find all optimal solutions of (m, b).
m = 121 , b = 0 21
3. Suppose P1 = 1.0, P2 = 1.1 and 1/pb = 1.1. Find all optimal solutions of (m, b).
m = 0, b = 121 21
4. Suppose P1 = 1.0, P2 = 1.1 and 1/pb = 1.1 and you find the investor chooses m = 1 and b = 4. How can you rationalize the investor’s choice?
a. Put money into the utility function; e.g., the person’s utility function is W (c1, c2, m/P2) = √c1 + √c2 + λ(m/P2) (λ > 0 is a given coefficient), saying that the person enjoys happiness directly from real balances at date 2.
b. The above solution is subject to the usual criticism to the approach that explains an observation by preference (i.e., explain why one person does A by that the person likes A).
When P1 = 1.1, P2 = 1.0, and 1/pb = 1.1, the optimal solutions for (m, b) are m + b = 121 and 21.
When P1 = 1.1, P2 = 1.0, and 1/pb = 1, there are multiple optimal solutions for (m, b), with m = 121 and b = 0 being one of them.When P1 = 1.0, P2 = 1.1, and 1/pb = 1.1, the optimal solutions for (m, b) are m = 0 and b = 121.If the investor chooses m = 1 and b = 4 when P1 = 1.0, P2 = 1.1, and 1/pb = 1.1, it suggests that the investor values having real balances at date 2 as part of their utility function.In each scenario, the values of Pt, pb, and the investor's utility function determine the optimal allocation of money (m) and government bonds (b) for maximizing the investor's utility. By solving the given equations and constraints, the specific combinations of (m, b) that yield optimal solutions can be determined.
In scenario 1, when P1 = 1.1, P2 = 1.0, and 1/pb = 1.1, the optimal solutions for (m, b) are m + b = 121 and 21. This indicates that the investor can allocate their resources in various ways as long as the sum of money and bonds is equal to 121.
Scenario 2 reveals that when P1 = 1.1, P2 = 1.0, and 1/pb = 1, an optimal solution can be achieved with m = 121 and b = 0. This means that the investor chooses to hold only money and no government bonds, potentially prioritizing immediate consumption.
In scenario 3, when P1 = 1.0, P2 = 1.1, and 1/pb = 1.1, the optimal solutions for (m, b) are m = 0 and b = 121. Here, the investor decides to hold only government bonds and no money.
In scenario 4, the investor's choice of m = 1 and b = 4 when P1 = 1.0, P2 = 1.1, and 1/pb = 1.1 suggests that the investor values having real balances (m/P2) at date 2 as part of their utility function. This implies that the investor derives utility directly from the amount of real balances held at date 2, in addition to consumption levels at both dates.
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May you help me with this business question I and very struggling
Answer:
availability of direct deposit
15 $ x 140 hours a month
15 × 140 × 12
= $ 25200
IT IS 15 TIMES THE HOURS TIMES THE MONTHS SINCE THERE ARE TWELVE MONTHS
It involves developing new products or
improving existing technologies, processes,
designs and marketing to solve problems,
increase efficiency, reach new customers,
and ultimately increase profits.
a. business opportunity
b. entrepreneurship
c. social change
d. socioeconomic
e. livelihood
f. business venture
g. relevance
h. business innovation
i. entrepreneur
j. economy
Answer:
h. business innovation
Explanation:
Business innovation is a term that describes a situation whereby a firm initiates the latest techniques or methods in the production of goods and, or delivery of services.
The purpose is to create a beneficial transition and change in the operation of business activities to gain more profits.
In other words, business innovation involves enhancing existing strategies or exercises, or in some cases beginning afresh.
Hence, going by the definition in the question. The correct answer is BUSINESS INNOVATION: It involves developing new products or improving existing technologies, processes, designs, and marketing to solve problems, increase efficiency, reach new customers, and ultimately increase profits.
Business innovation is the answer.
Business innovation refers to activity company undertakes by implementing new business processes, ideas, products or services with the main aim of increasing efficiency and profit
The bringing up of ideas for creation of new and improved products or services into market is known as Business InnovationThe initiation of Business Innovation activity is possible through intense brainstorming.Business innovation generally increase a company's efficiency and improve its profitability level.Learn more about Business Innovation here
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Which of these is not a main advantage for a business joining a cooperative?
A. Lower costs for purchasing supplies
B. Pooling products for better selling prices
C. Sharing costs for needed services
D. Having a larger vote than smaller companies
Having the larger vote as compared to the smaller companies described not the main advantage for the business joining a cooperative.
The following are the advantages:
Less cost incurred for purchasing the supplies. Products are pooled out for selling prices. The cost are shared for required services.Learn more: brainly.com/question/17429689
Answer: D
Explanation: just took it
At any given hotel, one of the largest departments is housekeeping.
True
False
Answer:
True
Explanation:
What should you avoid using when writing a formal email?
O An official signature
O Emojis
O Familiar acronyms
O Last names
Answer:
emojis
Explanation:
in the ____________, households work and receive payment from firms.
Answer:
labor market
Explanation:
P7-1: Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $170. The materials cost for a synthetic diamond is $110. The fixed costs incurred each year for factory upkeep and administrative expenses are $1,250,000. The machinery costs $1.21 million and is depreciated straight-line over 10 years to a salvage value of zero.
a. What is the accounting break-even level of sales in terms of number of diamonds sold?
b. What is the NPV break-even level of sales assuming a tax rate of 35%, a 10-year project life, and a discount rate of 12%? (Do not round intermediate calculations. Round your final answer to the nearest whole number.)
In terms of diamond sales dollars, the accounting break-even point is $200,040. We must take into consideration the expenses and income related to generating.
The diamonds in order to determine the accounting break-even level of sales in terms of the quantity of diamonds sold. The annual fixed costs, which include administrative and manufacturing maintenance costs, total $200,000.
The equipment also costs $1 million and depreciates straight-line over ten years to zero salvage value. Accordingly, the machinery's annual depreciation cost is calculated as $1 million divided by 10, or $100,000. The materials cost, which is $40 per diamond, is the variable cost. $100 is the selling price per diamond. To determine the sales level necessary for accounting break-even.
We must determine the point at which total revenue equals total expense in order to determine the accounting break-even level of sales in terms of the number of diamonds sold. Fixed costs and variable costs per diamond make up the total cost.
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In
, people invest money in a company in exchange for the company’s
.
Answer:
In equity crowdfunding, people invest money in a company in exchange for the company’s shares
Explanation:
Equity crowdfunding is the process in which people invest in start up companies and early stage companies that have not been listed on a stock market in exchange for shares in that company. As a result of the investment, the person becomes a shareholder and makes profit when the company do well but if the company fails, shareholders make losses.
Startups and early-stage companies use this method to raise capital.
Disadvantages of choosing a job that is extremely popular or in demand
The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.
What is a high demand job?This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.
The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.
The number of qualified persons may become more than the job that is available for the people to do in the long run.
Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.
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Many of your friends and family have pet dogs and cats. Each summer you enjoy looking after the pets, for example, taking dogs for walks and feeding them. As you care for the animals so well, one of your friends has suggested that you should start a ‘pet-care’ business for pet owners within a three mile radius of your home. You plan to look after their pet while they are on holiday.
You decide first to carry out some market research.
(a) Identify two purposes of market research. (2) set your answer like below
Answer:
the action or activity of gathering information about consumers' needs and preferences
-place
-target market
-feasibilty study
Explanation:
Place- allow you to gain attraction and attention from public
Target market-. Field of your business is it realible who would be your costumer and clients
The sales manager believes sales could be increased by 800 units if advertising expenditures were increased by $13,000. If advertising expenditures are increased and sales increase by 800 units, the effect on operating income will be a(n)\
Based on your question, the answer is that the effect on operating income depends on the contribution margin per unit and the additional advertising cost.
For an answer, consider the following:
1. Calculate the contribution margin per unit by subtracting variable costs per unit from the selling price per unit.
2. Multiply the contribution margin per unit by the increase in sales (800 units) to find the additional contribution margin.
3. Subtract the additional advertising cost ($13,000) from the additional contribution margin to find the net effect on operating income.
If the net effect is positive, operating income will increase; if negative, it will decrease.
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Michael's adjusted basis in the MW Partnership was $20,000 at the time he received the following nonliquidating distribution: Cash of $5,000 Equipment with an adjusted basis to the partnership of $8,000 and a fair market value of $10,000. What is the gain/loss Michael will recognize on this transaction
The appropriate solution of the given question "$15,000". A further explanation is provided below.
According to the question, the values are:
Partnership,
= $20,000
Cash received,
= $5,000
Adjusted basis,
= $8,000
Fair market value,
= $10,000
hence,
→ The Michael's adjusted basis in the partnership will be:
= \(Basis \ in \ partnership- Cash \ received\)
= \(20,000-5,000\)
= \(15,000\) ($)
Thus the above is the right answer.
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The economy of the United States is BEST described as
A. noncompetitive
B. socialistic
C. government-owned
D. market-based
E. not-for-profit
Answer:
i believe the answer is b
Explanation:
because the us economy is best described as mixed ( capitalism & socialism) so i think its b
Lisa Campos was interested in buying a coffee pot to use at college and a cassette player for her sister's birthday present. At the local discount store, she compared prices on coffee pots and chose the cheapest. She read the product information on each cassette player and finally chose one with stereo headphones and a rechargeable battery. For Lisa, the coffee pot was a. a convenience product, but the cassette player was a specialty product b. a heterogeneous shopping product, but the cassette player was a staple c. an impulse product, but the cassette player was a convenience product d. a specialty product, but the cassette player was a heterogeneous shopping product e. a homogeneous shopping product, but the cassette player was a heterogeneous shopping product
Answer:
e. a homogeneous shopping product, but the cassette player was a heterogeneous shopping product.
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
At the local discount store, Lisa compared prices on coffee pots and chose the cheapest. She read the product information on each cassette player and finally chose one with stereo headphones and a rechargeable battery. For Lisa, the coffee pot was a homogeneous shopping product, but the cassette player was a heterogeneous shopping product.
Homogeneous shopping products can be defined as products that have similar level of quality but with differing attributes such as brand image, price or production style.
On the other hand, heterogeneous shopping products can be defined as products that have different level of quality and their price is less important to consumers.
How can business activity affect the government?
Ceteris paribus, which one of the following business practices increases the possibility of a bank run? Banks
a. must maintain a positive net worth.
b. pay interest on accounts that meet certain requirements.
c. promise to satisfy withdrawal requests on a first-come, first-served basis.
d. keep cash at the ready in a vault in order to meet depositors’ withdrawal requests.
Ceteris paribus, the business practice that increases the possibility of a bank run is to promise to satisfy withdrawal requests on a first-come, first-served basis. The correct option is c) promise to satisfy withdrawal requests on a first-come, first-served basis.
This practice creates a sense of urgency among depositors, making them more likely to rush to withdraw their funds in times of uncertainty. A bank run occurs when a large number of depositors, due to panic or fear, attempt to withdraw their deposits simultaneously.
This can happen when depositors lose confidence in a bank's ability to meet its obligations. When a bank promises to satisfy withdrawal requests on a first-come, first-served basis, it can exacerbate the fear among depositors. They may worry that if they do not withdraw their money immediately, the bank will run out of funds and they will lose their deposits.
On the other hand, options a, b, and d help to reduce the likelihood of a bank run. Maintaining a positive net worth (option a) demonstrates the bank's financial stability and solvency, which can boost depositors' confidence. Paying interest on accounts that meet certain requirements (option b) provides an incentive for depositors to keep their funds in the bank, as they can earn returns on their deposits. Keeping cash at the ready in a vault (option d) ensures that the bank has sufficient liquidity to meet depositors' withdrawal requests, helping to maintain confidence in the bank's ability to honor its obligations.
In summary, promising to satisfy withdrawal requests on a first-come, first-served basis increases the possibility of a bank run, as it can lead to depositors rushing to withdraw their funds in times of uncertainty. Maintaining a positive net worth, paying interest on accounts, and keeping cash at the ready in a vault are all practices that can help to reduce the likelihood of a bank run.
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what is the impact of atm on banking sector?
Answer:
Explanation:
ATM s are of great use to the banks as the reduce the number of people storming the banks for withdrawal of money as well as deposit of money it reduces cost of operation and from customer point of view it is available easily near by hence travelling further distance to the bank is not required
ATMs are one of the most convenient services provided by the banks to customers. It is beneficial to banks as it is to its customers. It helps banks to save cost and time in withdrawing money and various other services which are now provided by ATM.
Automated teller machines, or ATMs as they are more commonly referred to, are a convenient way to conduct one-on-one transactions quickly and easily. One can do self-serviced transactions with these machines without a physical teller's aid or a trip to the bank branch. Cash withdrawals, cash deposits, and fund transfers are just a few of the many transactions possible with automated teller machines, or ATMs. Although the majority of customers only use ATMs to withdraw cash, these additional transactions make the service more effective.
With the advent of the ATM, users' financial lives became simpler because they could now perform simple transactions on their own with the aid of an ATM, which was much more practical than often visiting the bank. The ability for users to transact between banks is another significant advantage of an ATM. This means you can still use basic services like cash withdrawals from the ATM even if you don't have an account with the bank that runs the machine. Again, this saves you time and comes in handy in an emergency because you won't need to go to the ATM at your bank every time you need a quick infusion of cash. ATM helps banks operate more cheaply by lowering the number of human operations. The ATM provides service 24 hours a day which means customers can avail of money and other services at any time of the day.
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what themes and methods are common across qi methodologies?
The common themes across Qi methodologies are improvement, efficiency, and customer satisfaction. The most commonly used methods are data collection and analysis.
Qi methodologies focus on improving processes, increasing efficiency, and satisfying customer needs. The common methods used in Qi methodologies include data collection and analysis, process mapping, root cause analysis, and the use of quality tools such as the Plan-Do-Check-Act (PDCA) cycle, Six Sigma, and Lean.
These methods help to identify areas of improvement, analyze data to find root causes of problems, and implement solutions to improve processes and achieve desired results.
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Which steps are parts of doing a cost benefit analysis check all that apply: predicting costs, identifying outcomes, comparing costs, calculating cost, or delaying decisions
Answer:
Identifying Outcomes
Comparing Costs
Calculating Costs
Explanation:
Cost benefit analysis is a method which is used in decision making process to identify the best option available in financial terms. It helps in finacial value of any decision by considering its posssible expenses and advantages. The first step involved is to identify the outcome in financial value which is the consideration of cash outflow and inflow. The second step is to calculating the cost of options available. Now the third and last step is to comparing the results and opting the option with most benefits.
Answer:
Identifying Outcomes
Comparing Costs
Calculating Costs
Explanation:
Just the test
What is the present value of an ordinary annuity that pays $8,000 per year for 4 years at an 8% annual discount rate
An ordinary annuity that pays $8,000 per year for 4 years at an 8% annual discount rate has present value $24,751.81 .
To find: The present value of the given ordinary annuity
`PV = (PMT/i) × (1 - 1/(1+i)ⁿ)`
where PV = present value,
PMT = payment per period,
i = interest rate per period,
and n = total number of periods.
Substituting the given values, we get:
PV = ($8,000/0.08) × (1 - 1/(1+0.08)⁴)PV = $24,751.81 .
Therefore, the present value of the given ordinary annuity is $24,751.81.
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1. Lisa consumes only pizzas (P) and burritos (B). Her utility function is U = P0. 5 B0. 5. The price of per pizza is R10 and the price per burrito is R5. In equilibrium, Lisa consumes four pizzas. Using Lisa's utility function, calculate how many burritos she consumes
Using her utility function, we can say that Lisa's optimal consumption of burritos will be determined by her budget constraint and her preferences for pizzas and burritos R40 + R5X = Total income
To calculate how many burritos Lisa consumes in equilibrium using her utility function U =\(P^0.5\) * \(B^0.5\), we need to find the optimal consumption level that maximizes her utility given the prices of pizzas and burritos.
Let's assume Lisa consumes X burritos. We know she consumes four pizzas (P = 4).
Using Lisa's utility function:
U =\(P^0.5\) *\(B^0.5\)
U = \(4^0.5\) * X\(^0.5\)
U =\(2X^0.5\)
Now, let's consider Lisa's budget constraint. The total amount she spends on pizzas and burritos should not exceed her total income. Given that the price of a pizza is R10 and the price of a burrito is R5, Lisa's income can be divided between pizzas and burritos as follows:
Total spending on pizzas = Price per pizza * Quantity of pizzas consumed
Total spending on pizzas = R10 * 4 = R40
Total spending on burritos = Price per burrito * Quantity of burritos consumed
Total spending on burritos = R5 * X = R5X
According to Lisa's budget constraint:
Total spending on pizzas + Total spending on burritos = Total income
R40 + R5X = Total income
Since we don't have information about Lisa's total income, we cannot solve for the exact value of X (the quantity of burritos consumed) in this scenario. However, using her utility function, we can say that Lisa's optimal consumption of burritos will be determined by her budget constraint and her preferences for pizzas and burritos as reflected in her utility function.
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Manufacturing shipped 300 designer navy blue blazers to Custom Clothing Emporium. The blazers arrived on Friday, earlier than Custom had anticipated and on an exceptionally busy day for its receiving department. They were perfunctorily examined and sent to a nearby warehouse for storage until needed. On the following Monday, upon closer examination, it was discovered that the quality of the blazer linings was inferior to that specified in the sales contract. Which of the following is correct insofar as Custom’s rights?a. Custom can reject the blazers upon subsequent discovery of the defects.b. Custom must retain the blazers since it accepted them and had an opportunity to inspect them upon delivery.c. Custom’s only course of action is rescission.d. Custom had no rights if the linings were merchantable quality.
"Custom can reject the blazers upon subsequent discovery of the defects" (Option a) is correct insofar as Custom’s rights.
If the quality of the blazer linings was found to be below the specified quality in the sales contract, Custom Clothing Emporium has the right to reject the blazers upon subsequent discovery of the defects. This means that Custom Clothing Emporium can refuse the delivery of the designer navy blue blazers as they are not of the quality specified in the sales contract or can demand a replacement for the defective blazers.
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The Outpost, a sole proprietorship currently sells short leather jackets for $369 each. The firm is considering selling long coats also. The long coats would sell for $719 each and the company expects to sell 820 a year. If the company decides to carry the long coat, management feels that the annual sales of the short jacket will decline from 1,120 to 1,040 units. Variable costs on the jacket are $228 and $435 on the long coat. The fixed costs for this project are $23,100, depreciation is $10,400 a year, and the tax rate is 34 percent. What is the projected operating cash flow for this project
Answer:
$134,546
Explanation:
Calculation to determine the projected operating cash flow for this project
Projected operating cash flow=
{[820 × ($719 − 435)] + [(1,040 − 1,120) × ($369 − 228)] − $23,100} × {1 − .34} + {$10,400 × .34}
Projected operating cash flow={[820 × $284)] + [$80 × $141] − $23,100} × {.66} + {$3,436}
Projected operating cash flow= $134,546
Therefore the projected operating cash flow for this project is $134,546
Experience and research indicate that high-performance project teams are much more likely to develop under all the following conditions except:
Group of answer choices
a. There are 10 or fewer members per team.
b. Members are assigned to the project full time.
c. team members are selected by their managers.
d. Members report directly to the project manager.
The condition under which high-performance project teams are much less likely to develop is when team members are selected by their managers.
Experience and research have shown that certain conditions contribute to the development of high-performance project teams. These conditions include having 10 or fewer members per team, members being assigned to the project full-time, and members reporting directly to the project manager. These conditions create an environment that fosters collaboration, accountability, and effective communication among team members.
However, the condition that does not contribute to the development of high-performance project teams is when team members are selected by their managers. When managers have sole authority over the selection process, it may result in favoritism or bias. This can hinder the formation of a diverse and balanced team with a wide range of skills and perspectives, which are crucial for high-performance teams.
To maximize the potential for success, it is important to consider various factors when selecting team members, such as their expertise, experience, and ability to work well with others. By doing so, organizations can enhance the likelihood of developing high-performance project teams.
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A city is reviewing staffing levels and staffing schedules for their emergency medical response team. To determine if EMS calls in this city are uniformly distributed by day of the week, they analyzed data for a sample of 574 EMS calls. ( Note: Use 2 Goodness of Fit Test) (5%, Show necessary steps)
Day of the Week Sun. Mon. Tues. Wed. Thurs. Fri. Sat. Number of EMS calls 88 79 84 85 77 74 87
a. Develop Null and alternative hypothesis. B. Are calls for emergency medical services (EMS) uniformly distributed by day of week At 5% level of significance?
The null hypothesis is that EMS calls are uniformly distributed by day of the week. The alternative hypothesis is that EMS calls are not uniformly distributed by day of the week.
What is null hypothesis?A null hypothesis is a type of statistical hypothesis that asserts that there is no statistical significance in a given set of observations. Using sample data, hypothesis testing is used to assess the credibility of a hypothesis.
The null hypothesis states that EMS calls are evenly distributed by weekday. The alternative hypothesis is that EMS calls are not evenly distributed by weekday.The chi-square goodness-of-fit test will be used to test this hypothesis. The test statistic is computed as follows:χ² = ∑(Observed - Expected)² / Expected
Using the observed and expected values given in the table, we can calculate the chi-square test statistic:
χ² = [(88 - 82)² / 82] + [(79 - 82)² / 82] + [(84 - 82)² / 82] + [(85 - 82)² / 82] + [(77 - 82)² / 82] + [(74 - 82)² / 82] + [(87 - 82)² / 82]
χ² = 3.34
The degrees of freedom for this test is (number of categories - 1), which in this case is 7 - 1 = 6.
Using a chi-square distribution table with 6 degrees of freedom and a significance level of 0.05, we find the critical value to be 12.59.
Since our calculated χ² value of 3.34 is less than the critical value of 12.59, we fail to reject the null hypothesis.
Thus, we conclude that there is not enough evidence to suggest that EMS calls are not uniformly distributed by day of the week in this city.
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