Assume That a Hypothesis Test of the Given Claim Will

question 53

Multiple Choice

Assume that a hypothesis test of the given claim will be conducted. Identify the type I or type II error for the test.
-A medical researcher claims that 12% of children suffer from a certain disorder. Identify the type I error for the test.

• A) Fail to reject the claim that the percentage of children who suffer from the disorder is equal to 12% when that percentage is actually 12%.
• B) Fail to reject the claim that the percentage of children who suffer from the disorder is equal to 12% when that percentage is actually different from 12%.
• C) Reject the claim that the percentage of children who suffer from the disorder is equal to 12% when that percentage is actually 12%.
• D) Reject the claim that the percentage of children who suffer from the disorder is different from 12% when that percentage really is different from 12%.

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Definitions:

Favorable Volume Variances

Differences between the expected volume of production or sales and the actual volume that lead to lower costs or higher profits than planned.

Production Capacity

The maximum output that an organization can produce in a given period under normal working conditions, considering available resources.

Work Stoppages

Occurrences when employees halt work, often due to labor disputes or strikes, affecting productivity and operations.

Direct Materials Price Variance

The difference between the actual cost of direct materials and the expected standard cost, indicating how well a company controls its material costs.