Discrete Components, Inc $\alpha$ = 005, the Appropriate Decision Is _________________

question 72

Multiple Choice

Discrete Components, Inc.manufactures a line of electrical resistors.Presently, the carbon composition line is producing 100-ohm resistors.The population variance of these resistors "must not exceed 4" to conform to industry standards.Periodically, the quality control inspectors check for conformity by randomly select 10 resistors from the line, and calculating the sample variance.The last sample had a variance of 4.36.Assume that the population is normally distributed.Using $\alpha$ = 0.05, the appropriate decision is _________________.

• A)increase the sample size
• B)reduce the sample size
• C)reject the null hypothesis
• D)fail to reject the null hypothesis
• E)maintain status quo

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Definitions:

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising annually.

CPI

Tracking the average evolution in pricing for a collection of goods and services purchased by people in urban areas, the Consumer Price Index serves as an indicator of these changes over time.

Consumer Price Index

The Consumer Price Index measures the average change over time in the prices paid by consumers for a basket of goods and services.

Base Year

Base year is a specific year against which economic growth or other market indices are measured, serving as a standard or reference point for economic analysis.