TABLE 9-2 a Student Claims That He Can Correctly Identify Whether a Whether

question 35

Multiple Choice

TABLE 9-2
A student claims that he can correctly identify whether a person is a business major or an agriculture major by the way the person dresses. Suppose in actuality that if someone is a business major, he can correctly identify that person as a business major 87% of the time. When a person is an agriculture major, the student will incorrectly identify that person as a business major 16% of the time. Presented with one person and asked to identify the major of this person (who is either a business or agriculture major) , he considers this to be a hypothesis test with the null hypothesis being that the person is a business major and the alternative that the person is an agriculture major.
-Referring to Table 9-2, what is the "actual confidence coefficient"?

• A) 0.84
• B) 0.87
• C) 0.16
• D) 0.13

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Definitions:

Securitization Entities

Specialized entities created to pool various financial assets and sell them as securities to investors.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and stockholders' equity at a specific point in time.

U.S. GAAP

United States Generally Accepted Accounting Principles; the framework of accounting standards, rules, and procedures defined by the professional accounting industry in the United States.

Sales Revenue Approach

A method of recognizing revenue based on the sales transactions processed by a company.