A Survey Claims That 9 Out of 10 Doctors Recommend

question 114

Multiple Choice

A survey claims that 9 out of 10 doctors recommend aspirin for their patients with headaches.To test this claim against the alternative that the actual proportion of doctors who recommend aspirin is less than 0.90,a random sample of 100 doctors was selected.Suppose that the test statistic is -2.20.Can you conclude that H₀ should be rejected at the (a) α = 0.10,(b) α = 0.05,and (c) α = 0.01 level of Type I error?

• A)(a)yes; (b)yes; (c)yes
• B)(a)no; (b)no; (c)no
• C)(a)no; (b)no; (c)yes
• D)(a)yes; (b)yes; (c)no

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Definitions:

Sustainable

The ability of something to be maintained at a certain rate or level without depleting natural resources or causing severe ecological damage.

Earnings Quality

A measure of the reliability of a company’s earnings as an indicator of its financial health and performance.

Accounting Methods

Systems used by a company to keep track of its financial transactions and to prepare financial statements, such as cash basis or accrual basis accounting.

Bad News Earnings Surprises

Occur when a company reports lower earnings than market analysts' expectations, often leading to a negative reaction in the stock market.