Assume That a Hypothesis Test of the Given Claim Will $\chi ^ { 2 }$

question 111

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.
-For large numbers of degrees of freedom, the critical $\chi ^ { 2 }$ values can be approximated as follows:
$$\chi ^ { 2 } = \frac { 1 } { 2 } ( z + \sqrt { 2 k - 1 } ) ^ { 2 }$$
where $\mathrm { k }$ is the number of degrees of freedom and $\mathrm { z }$ is the critical value. To find the lower critical value, the negative z-value is used, to find the upper critical value, the positive z-value is used. Use this approximation to estimate the critical value of $\chi ^ { 2 }$ in a right-tailed hypothesis test with $\mathrm { n } = 146$ and $\alpha = 0.01$

• A) \(\chi ^ { 2 } \approx 192.742\)
• B) \(\chi ^ { 2 } \approx 186.824\)
• C) \(\chi ^ { 2 } \approx 187.961\)
• D) \(\chi ^ { 2 } \approx 191.590\)

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Definitions:

Machine-Hours

Machine-hours measure the amount of time a piece of machinery is in operation and is often used as a basis for allocating manufacturing overhead.

Maintenance Cost

Expenses incurred in keeping property, equipment, or machinery in efficient operating condition, including both preventive and corrective measures.

Relevant Range

The span of activity levels within which the assumptions made about cost behavior in cost-volume-profit analysis remain valid.

Average Costs

The total costs (fixed and variable) divided by the total output production, giving a per unit cost of production.