Solve the Problem. -A Manufacturer Finds That in a Random Sample of 100

question 4

Multiple Choice

Solve the problem.
-A manufacturer finds that in a random sample of 100 of its CD players, 96% have no defects. The manufacturer wishes to make a claim about the percentage of nondefective CD players and is prepared to exaggerate. What is
The highest rate of nondefective CD players that the manufacturer could claim under the following condition?
His claim would not be rejected at the 0.05 significance level if this sample data were used. Assume that a
Left-tailed hypothesis test would be performed.

• A) 98.4%
• B) 96.6%
• C) 96.5%
• D) 98.2%

---

Definitions:

Many

A term indicating a large number of items, people, or entities in a given context.

Crude Quantity Theory

A basic hypothesis regarding the relationship between the quantity of money in an economy and its level of prices.

Constant

A value that remains unchanged throughout the scope of an equation, analysis, or experiment.

PQ

A notation commonly used in economics to represent the product of price (P) and quantity (Q), indicating the total revenue.