The State Association of Retired Teachers Has Recently Taken Flak $$\begin{array} { l } \mathrm { H } _ { 0 } : \mathrm { p } = 0.6 \\\mathrm { H } _ { \mathrm { A } } : \mathrm { p } > 0.6\end{array}$$

question 29

Multiple Choice

The State Association of Retired Teachers has recently taken flak from some of its members regarding the poor choice of the association's name. The association's by-laws require that more than 60 percent of the association must approve a name change. Rather than convene a meeting, it
Is first desired to use a sample to determine if meeting is necessary. Suppose the association decided to conduct a test of hypothesis using the following null and alternative hypotheses:
$$\begin{array} { l } \mathrm { H } _ { 0 } : \mathrm { p } = 0.6 \\\mathrm { H } _ { \mathrm { A } } : \mathrm { p } > 0.6\end{array}$$
Define a Type I Error in the context of this problem.

• A) They conclude that exactly \(60 \%\) of the association wants a name change when, in fact, that is not true.
• B) They conclude that exactly \(60 \%\) of the association wants a name change when that is, in fact, true.
• C) They conclude that more than \(60 \%\) of the association wants a name change when that is, in fact, true.
• D) They conclude that more than \(60 \%\) of the association wants a name change when, in fact, that is not true.

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Definitions:

Fair Market Value

The price that a knowledgeable, willing, and unpressured buyer would pay to a knowledgeable, willing, and unpressured seller in the market.

Insurance Proceeds

The money received from an insurance claim, which compensates for a loss or damage.

Subrogation Clause

A provision in an insurance policy allowing the insurer to take legal action in the name of the insured against a third party responsible for the insured’s loss.

Property Damage

Physical harm or destruction to someone's tangible property caused by another's actions or negligence.