Formulate the Indicated Conclusion in Nontechnical Terms

question 69

Multiple Choice

Formulate the indicated conclusion in nontechnical terms. Be sure to address the original claim.
-An entomologist writes an article in a scientific journal which claims that fewer than 17 in ten thousand male fireflies are unable to produce light due to a genetic mutation. Assuming that a hypothesis test of the claim has been conducted and that the conclusion is to reject the null hypothesis, state the conclusion in nontechnical terms.

• A) There is sufficient evidence to support the claim that the true proportion is greater than 17 in ten thousand.
• B) There is not sufficient evidence to support the claim that the true proportion is greater than 17 in ten thousand.
• C) There is not sufficient evidence to support the claim that the true proportion is less than 17 in ten thousand.
• D) There is sufficient evidence to support the claim that the true proportion is less than 17 in ten thousand.

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Definitions:

Payback Period Method

A capital budgeting method that calculates the time required for an investment to generate cash flows to recover its initial cost.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments.

Time Value of Money

The concept that money available today is worth more than the same amount in the future due to its potential earning capacity.