A Sample of 1400 Items Had 280 Defective Items

question 60

Multiple Choice

A sample of 1400 items had 280 defective items. For the following hypothesis test, ​
H₀: p ≤ .20
H_a: p > .20
​
The test statistic is

• A) .28.
• B) .14.
• C) .20.
• D) zero.

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Definitions:

Overall Economy

The comprehensive system of production, distribution, and consumption of goods and services within a country or region.

Business Cycles

The fluctuating levels of economic activity that an economy experiences over a period, marked by periods of expansion and contraction.

Contractions

Periods in the business cycle where there is a decline in economic activity, marked by reduced spending and increased unemployment.

Recession

A brief phase of economic downturn, signified by reduced commercial and industrial operations, often defined by a sequential fall in GDP over two quarters.