The Centers for Disease Control (CDC)would Like to Test the Hypothesis

question 34

Multiple Choice

The Centers for Disease Control (CDC) would like to test the hypothesis that the proportion of obese adults in the U.S. has increased this year when compared to last year. A random sample of 125 adults this year found that 56 were obese. Last year, a random sample of 140 adults found that 42 were obese. If Population 1 is defined as this year and Population 2 is defined as last year, the p- value for this hypothesis test is _.

• A)0.1511
• B)0.1877
• C)0.0064
• D)0.0301

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Definitions:

Allowance for Doubtful Accounts

An estimate of the receivables that may not be collected, reducing gross receivables to a more realistic net value.

Uncollectible Receivables

Accounts receivable that a company has determined are unlikely to be collected and thus are written off as a bad debt expense.

Bad Debt Expense

An expense reported on the income statement, reflecting the cost of debts that are deemed uncollectible.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the amount of accounts receivable that may not be collectible.