Suppose That a Conveyor Used to Sort Packages by Size $H _ { 0 }$

question 497

Multiple Choice

Suppose that a conveyor used to sort packages by size does not work properly. We test the conveyor on several packages (with $H _ { 0 }$ : incorrect sort) and our data results in a $P$ -value of $0.016$ . What probably happens as a result of our testing?

• A) Correctly reject \(\mathrm { H } _ { 0 }\).
• B) Reject \(\mathrm { H } _ { 0 }\), making a Type II error.
• C) Fail to reject \(\mathrm { H } _ { 0 }\), committing a Type II error.
• D) Correctly fail to reject \(\mathrm { H } _ { 0 }\).
• E) Reject \(\mathrm { H } _ { 0 }\), making a Type I error.

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Definitions:

Retention Ratio

The proportion of net income that is retained by a company rather than distributed to its shareholders as dividends.

Payout Ratio

The proportion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company's total earnings.

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Internal Growth Rate

The maximum growth rate a firm can achieve without resorting to external financing.