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

question 47

Multiple Choice

SCENARIO 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 an 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 Scenario 9-2,what would be a Type II error?

• A)Saying that the person is a business major when in fact the person is a business major.
• B)Saying that the person is a business major when in fact the person is an agriculture major.
• C)Saying that the person is an agriculture major when in fact the person is a business major.
• D)Saying that the person is an agriculture major when in fact the person is an agriculture major.

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Definitions:

Collection Float

The time period between when a check is deposited and when the funds become available in the recipient's account, affecting the cash flow and liquidity.

Float Management

The practice of managing the time between when a check is deposited and when it clears, to optimize the use of funds.

Target Cash Balance

The optimal amount of cash a company seeks to maintain to handle operational and transactional needs efficiently.

Carrying Costs

Expenses associated with holding inventory, including storage costs, insurance, and loss due to obsolescence.