SCENARIO 9-2
a Student Claims That He Can Correctly Identify $\beta$

question 177

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 is the value of $\beta$ ?

• A)0.13
• B)0.16
• C)0.84
• D)0.87

---

Definitions:

Externalities

Side effects or consequences of an industrial or commercial activity that affect other parties without this being reflected in market prices.

Consumers

Individuals or groups that purchase goods or services for personal use and are the end-users in the supply chain.

Charitable Goods

Items donated to or produced by charitable organizations for the purpose of supporting their missions, often distributed to those in need or sold to raise funds.

Tax-exempt

Not subject to tax by federal or local authorities, often applicable to certain organizations, incomes, or properties.