Identify the Type of Test

question 5

Multiple Choice

Identify the type of test.
-A company manufacturing computer chips finds that 8% of all chips manufactured are
Defective. In an effort to decrease the percentage of defective chips, management decides
To provide additional training to those employees hired within the last year. After
Training was implemented, a sample of 450 chips revealed only 27 defects. A hypothesis
Test is performed to determine if the additional training was effective in lowering the
Defect rate. Which of the following statement is true about this hypothesis test?

• A) It is a two tailed test about a proportion.
• B) It is a one tailed test about a mean.
• C) It is a one tailed test about a proportion.
• D) It is a two tailed test about a mean.
• E) None of the above.

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Definitions:

NYSE

The New York Stock Exchange, one of the world's largest stock exchanges, where stocks of publicly-held companies are traded.

Advancing Issues

Refers to stocks or securities that have increased in price over a given period.

Point and Figure

A charting method used in technical analysis, focusing solely on price movements rather than time or volume, to identify supply and demand trends.

Congestion Areas

Regions on a chart where a financial security's price has traded within a narrow range for a period, indicating balance between supply and demand.