SCENARIO 9-2
a Student Claims That He Can Correctly Identify $\alpha$

question 136

Multiple Choice

SCENARIO 9-2
A student claims that he can correctly identify whether a person is a business major or an agriculture
major by the way the person dresses. Suppose in actuality that if someone is a business major, he can
correctly identify that person as a business major 87% of the time. When a person is an agriculture
major, the student will incorrectly identify that person as a business major 16% of the time. Presented
with one person and asked to identify the major of this person (who is either a business or an
agriculture major) , he considers this to be a hypothesis test with the null hypothesis being that the
person is a business major and the alternative that the person is an agriculture major.
-Referring to Scenario 9-2, what is the value of $\alpha$ ?

• A) 0.13
• B) 0.16
• C) 0.84
• D) 0.87

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Definitions:

Ad Valorem Duty

A type of tax charged based on the value of the product or property, commonly used in customs duties.

Ad Valorem Duty

A type of tax applied on the value of an item, commonly used in the context of customs duties on imported goods.

Country A

A placeholder name often used to denote a hypothetical or undisclosed nation in discussions or examples.

Australian Dollars

The recognized monetary unit of Australia, denoted by the abbreviation AUD.