Use the Following Information to Answer the Question

question 16

Multiple Choice

Use the following information to answer the question. A janitor at a large office building believes that his supply of light bulbs has too many defective bulbs. The janitor's null hypothesis is that the supply of light bulbs has a defect rate of p = 0.07 (the light bulb manufacturer's stated defect rate) . Suppose he does a hypothesis test with a significance level of 0.05.
Symbolically, the null and alternative hypothesis are as follows: H₀: p = 0.07 and H_a: p > 0.07.
-Choose the statement that best describes the significance level in the context of the hypothesis test.

• A)The significance level of 0.05 is the defect rate we believe is the true defect rate.
• B)The significance level of 0.05 is the probability of concluding that the defect rate is equal to 0.07 when in fact it is greater than 0.07.
• C)The significance level of 0.05 is the test statistic that we will use to compare the observed outcome to the null hypothesis.
• D)The significance level of 0.05 is the probability of concluding that the defect rate is higher than 0.07 when in fact the defect rate is equal to 0.07.

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