A Company Claims That 9 Out of 10 Doctors (I $90 \%$

question 57

Multiple Choice

A company claims that 9 out of 10 doctors (i.e., $90 \%$ ) recommend its brand of cough syrup to their patients. To test this claim against the alternative that the actual proportion is less than $90 \%$ , a random sample of doctors was taken. Suppose the test statistic is $z = - 2.23$ . Can we conclude that $H _ { 0 }$ should be rejected at the a) $\alpha = .10$ , b) $\alpha = .05$ , and c) $\alpha = .01$ level?

• A) a) no; b) no; c) no
• B) a) yes; b) yes; c) yes
• C) a) no; b) no; c) yes
• D) a) yes; b) yes; c) no

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Definitions:

Unit Selling Price

The cost at which a single unit of product is sold to customers, important for determining pricing strategies and profitability.

Unit Variable Cost

The cost associated with producing one additional unit of a product.

Break-even Point

The stage at which total revenues equal total costs, resulting in neither profit nor loss for the business.

Picture Frame Store

A retail shop specializing in selling frames for artwork, photographs, and other decorative wall hangings.