A Manufacturer Claims That Less Than 1% of All His

question 34

Multiple Choice

A manufacturer claims that less than 1% of all his products do not meet the minimum government
Standards. A survey of 500 products revealed ten did not meet the standard.
If the computed value of z = -2.25 and the level of significance is 0.03, what is your decision?

• A) You reject the null hypothesis, and agree that less than 1% fail to meet government standards.
• B) You have insufficient evidence to reject the null hypothesis.
• C) You reject the alternate hypothesis and agree that less than 1% meet government standards.
• D) You should have used the t-test.

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Definitions:

Suggest Changes

The act of proposing adjustments or modifications to ideas, processes, or behaviors to improve or resolve a situation.

Hierarchy of Needs

A psychological theory proposed by Abraham Maslow that is often depicted as a pyramid with physiological needs at the base, ascending through safety, love/belonging, esteem, to self-actualization at the top.

Physiological Needs

The most basic of Maslow’s hierarchy of needs having to do with the satisfaction of physical needs, including food and shelter.

Safety and Security

Basic human needs that involve being free from harm and threat, including protection of one's health and property.