Suppose That a Manufacturer Is Testing One of Its Machines $97 \%$

question 183

Multiple Choice

Suppose that a manufacturer is testing one of its machines to make sure that the machine is producing more than $97 \%$ good parts $\left( \mathrm { H } _ { 0 } : p = 0.97 \right.$ and $\left. \mathrm { H } _ { \mathrm { A } } : p > 0.97 \right)$ . The test results in a $P$ -value of $0.122$ . Unknown to the manufacturer, the machine is actually producing $99 \%$ good parts. What probably happens as a result of the testing?

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

Recognize the theoretical foundations of finance and its practical applications in accounting and economics.

Identify the functions and responsibilities of the finance department within a corporation.

Understand the characteristics and taxation of different business forms, including S corporations and partnerships.

Comprehend the objectives of financial management, including shareholders’ wealth maximization.

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Definitions:

Diversify Sources

A strategy to reduce risk in investment or business operations by acquiring a wide range of assets or various types of resources.

Dependency

A situation where one entity relies on another for support, resources, or sustenance.

Mission Statement

An official outline of the goals and principles held by a corporation, organization, or person.

Government Assistance

Financial or other support provided by government agencies to individuals, organizations, or sectors in need.