A Car Manufacturer Looks at Past Sales and Realizes That

question 63

Multiple Choice

A car manufacturer looks at past sales and realizes that the most common car color is silver with 24% of purchasers selecting that color.The dealerships in one state believe that car purchasers in their area believe that the proportion of purchasers selecting silver is greater than 24%.Based on a survey of 84 car purchasers in the state, the dealerships find that 26% of them would select silver.If the true proportion selecting silver is 27%, what is the probability of the dealerships making a Type II error, given an alpha of 0.05?

• A)0.4587
• B)0.1154
• C)0.8322
• D)0.8423
• E)0.1678

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Definitions:

Crude Quantity Theory

A basic economic theory suggesting that the amount of money in supply directly affects the price level and inflation in an economy.

Sophisticated Quantity Theory

An advanced approach to Quantity Theory of Money, considering complex factors influencing money supply and demand.

Deflation

A decline in the price level for at least two years.

Keynesians

Economists and thinkers following the theories of John Maynard Keynes, who advocate for active government intervention in the economy to manage demand and avoid economic recessions.