A Hypothesis Test Is Performed to Test the Claim That $\beta$

question 44

Multiple Choice

A hypothesis test is performed to test the claim that a population proportion is greater than 0.7. Find the probability of a type II error, $\beta$ , given that the true value of the population proportion
Is 0.72. The sample size is 50 and the significance level is 0.05.

• A) 0.4129
• B) 0.5754
• C) 0.7123
• D) 0.9706

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Definitions:

Transfer Payments

Payments made by the government to individuals or organizations without requiring any goods or services in return, such as welfare checks or social security.

Business Cycle

The fluctuations in economic activity that an economy experiences over a period, typically characterized by expansion (growth) and contraction (recession) phases.

MPC

The marginal propensity to consume, which represents the portion of additional income that a household spends on consumption instead of saving.

Multiplier

In economics, a factor by which a change in one economic variable, such as spending, leads to a greater change in another variable, such as GDP.