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A Large Software Development Firm Recently Relocated Its Facilities

question 5

Multiple Choice

A large software development firm recently relocated its facilities.Top management is interested in fostering good relations with their new local community and has encouraged their professional employees to engage in local service activities.They believe that the firm's professionals volunteer an average of more than 15 hours per month.If this is not the case, they will institute an incentive program to increase community involvement.Based on data collected they perform the appropriate hypothesis test.A Type II error in this context means
I.They failed to detect that the average number of hours volunteered by the firm's professional employees is more than 15 hours when in fact it is.
II.They would decide not to institute an incentive program to increase community involvement when they should have.
III.They would waste money instituting an incentive program to increase community involvement among its professional employees that was not needed.

Definitions:

Storage Sites

Locations where goods or materials are held temporarily or permanently before they are distributed to the final consumer.

Excess Capacity

The situation where a company's production capabilities exceed the current demand for its products or services, leading to underutilized resources.

Utilization Facility

A facility used primarily for the processing, conversion, or treatment of resources or materials, often in the energy sector.

Demand Fluctuations

Variations in customer demand for products or services over a certain period of time.