A Recent Survey Suggests 30% of Boat Owners Do Not

question 88

Multiple Choice

A recent survey suggests 30% of boat owners do not regularly use their boat after the second year of ownership.A local boat dealer wants to test the alternative hypothesis that p > .30 with α = .05.He surveys 60 boat owners and finds 42% of the owners who have owned their boat for three years report they do not regularly use their boat.Assuming that p = .35, the probability of type II error is approximately ________.

• A)0.2211
• B)0.1421
• C)0.8579
• D)0.7789
• E)0.4965

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Definitions:

Public Company Accounting Oversight Board

An independent oversight body established by Congress to regulate the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports.

Accounting Firms

Professional services organizations specializing in accounting, audit, tax, and advisory services for individuals and businesses.