A Survey Claims That 9 Out of 10 Doctors Recommend

question 8

Multiple Choice

A survey claims that 9 out of 10 doctors recommend aspirin for their patients with headaches. To test this claim against the alternative that the actual proportion of doctors who recommend aspirin is less than 0.90, a random sample of 100 doctors was selected. Suppose that the test statistic is - 2.20. Can we conclude that H₀ should be rejected at the (a) α = 0.10, (b) α = 0.05, and (c) α = 0.01 level of Type I error?

• A) (a) yes; (b) yes; (c) yes
• B) (a) yes; (b) yes; (c) no
• C) (a) no; (b) no; (c) yes
• D) (a) no; (b) no; (c) no

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Definitions:

Efficient Level

The point at which the optimal quantity of a good or service is produced, maximizing the potential benefit and minimizing waste.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Software Upgrade

The process of replacing a product with a newer version of the same software, typically to enhance features or improve performance.

Marginal Benefit

This refers to the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.