Suppose That a Manufacturer Is Testing One of Its Machines $\left( H _ { 0 } : p = 0.97 \right.$

question 6

Short Answer

Suppose that a manufacturer is testing one of its machines to make sure that the
Machine is producing more than 97% good parts $\left( H _ { 0 } : p = 0.97 \right.$ and $\left. H _ { A } : p > 0.97 \right)$ . The test results in a P-value of $0.102$ . In reality, the machine is producing $99 \%$ good parts. What probably happens as a result of our testing?
A. We correctly fail to reject $H _ { 0 }$ .
B. We correctly reject $H _ { 0 }$ .
C. We reject $H _ { 0 }$ , making a Type I error.
D. We fail to reject $H _ { 0 }$ , making a Type I error.
E. We fail to reject $H _ { 0 }$ , making a Type II error.

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Definitions:

Long-term Investments

Investments in securities or other assets that a company intends to hold for a period exceeding one year to earn revenue or profit.

Intangible Assets

Non-physical assets that have economic value due to their advantages or rights (e.g., patents, trademarks, goodwill).

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts and prepare the accounts for the next period.

Future Business

Operations, activities, or engagements that a company plans to undertake in coming periods to increase its profitability and growth.