A Manufacturer Claims That Less Than 1% of All His

question 74

Multiple Choice

A manufacturer claims that less than 1% of all his products do not meet the minimum government standards. A survey of 500 products revealed ten did not meet the standard.

• A) The null hypothesis is p ≥ 0.01. The alternate hypothesis is p < 0.01
• B) The null hypothesis is p = 0.01. The alternate hypothesis is p > 0.01
• C) The null hypothesis is p ≥ 0.01. The alternate hypothesis is p > 0.01
• D) The null hypothesis is p = 0.01. The alternate hypothesis is p ≠ 0.01
• E) The null hypothesis is p< 0.01. The alternate hypothesis is p ≠ 0.01

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Definitions:

Phillips Curve

A macroeconomic theory that suggests unemployment and inflation have a stable and inverse relationship, indicating trade-offs short-term policy-making.

Disinflation

A reduction in the rate of inflation, indicating a slowdown in the rate at which prices are rising.

Money Supply Growth

The rate at which the total amount of money available in an economy changes over a specific period of time.

Unemployment

Unemployment refers to the situation when individuals who are capable of working and are actively seeking employment are unable to find a job.