It Is Desired to Test $H _ { 0 } : \mu = 40$

question 2

Multiple Choice

It is desired to test $H _ { 0 } : \mu = 40$ against $H _ { \mathrm { a } } : \mu < 40$ using $\alpha = .10$ . The population in question is uniformly distributed with a standard deviation of 10 . A random sample of 36 will be drawn from this population. If $\mu$ is really equal to 35 , what is the probability that the hypothesis test would lead the investigator to commit a Type II error?

• A) \(.4573\)
• B) \(.9573\)
• C) \(.0854\)
• D) \(.0427\)

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Definitions:

Internal Rate Of Return

A financial metric used to estimate the profitability of potential investments by calculating the discount rate that makes the net present value of all cash flows equal to zero.

Discounted Cash Flow

A financial analysis technique that estimates the value of an investment based on its expected future cash flows, discounted back to their present value.

Future Cash Flows

Estimated monetary gains or expenditures that a company expects to receive or pay out in the future.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal installments.