Assume That a Hypothesis Test of the Given Claim Will

question 13

Multiple Choice

Assume that a hypothesis test of the given claim will be conducted. Identify the type I or type II_ error for the test. A consumer advocacy group claims that the mean mileage for the Carter
Motor Company's new sedan is less than 32 miles per gallon. Identify the type I error for the
Test.

• A)Reject the claim that the mean is equal to 32 miles per gallon when it is actually less than 32 miles per gallon.
• B)Fail to reject the claim that the mean is equal to 32 miles per gallon when it is actually less than 32 miles per gallon.
• C)Fail to reject the claim that the mean is equal to 32 miles per gallon when it is actually greater than 32 miles per gallon.
• D)Reject the claim that the mean is equal to 32 miles per gallon when it is actually 32 miles per gallon.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thus having a financial stake and certain rights in the company.

RMBCA

The Revised Model Business Corporation Act (RMBCA) is a set of model laws prepared by the American Bar Association to provide a standard for the governance of corporations.

Pre-incorporation Subscription

An agreement by an investor to purchase shares in a corporation that is yet to be formed, contingent upon the actual incorporation of the company.

Revoked

The action of withdrawing, cancelling, or annulling something previously granted, such as a license, privilege, or legal right.