Read the Following Problem Description Then Choose the Correct Null

question 57

Multiple Choice

Read the following problem description then choose the correct null and alternative hypothesis. A new drug is being tested to see whether it can reduce the rate of food- related allergic reactions in children ages 1 to 3 with food allergies. The rate of allergic reactions in the population of concern is 0.03.

• A)H₀: p × 0.03; H_a: p = 0.03
• B)H₀: p < 0.03; H_a: p = 0.03
• C)H₀: p = 0.03; H_a: p > 0.03
• D)H₀: p = 0.03; H_a: p < 0.03

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Definitions:

Fixed Manufacturing Overhead

Refers to the consistent, non-variable costs associated with manufacturing a product, such as factory lease payments and salaries of permanent staff.

Direct Labor

The wages and other costs for labor that are directly involved in the manufacturing of a product or the provision of a service.

Raw Material

The basic material from which a product is made, typically processed and used in the manufacturing process.

Materials Price Variance

The difference between the actual cost of raw materials and the expected (standard) cost, used in budgeting and financial analysis to gauge purchasing efficiency.