TABLE 9-2 a Student Claims That He Can Correctly Identify Whether a Whether

question 135

Multiple Choice

TABLE 9-2
A student claims that he can correctly identify whether a person is a business major or an agriculture major by the way the person dresses. Suppose in actuality that if someone is a business major, he can correctly identify that person as a business major 87% of the time. When a person is an agriculture major, the student will incorrectly identify that person as a business major 16% of the time. Presented with one person and asked to identify the major of this person (who is either a business or an agriculture major) , he considers this to be a hypothesis test with the null hypothesis being that the person is a business major and the alternative that the person is an agriculture major.
-Referring to Table 9-2, what is the "actual confidence coefficient"?

• A) 0.13
• B) 0.16
• C) 0.84
• D) 0.87

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Definitions:

Inventory Period

The time it takes for a company to turn its inventory into sales.

Accounts Payable Period

The duration it takes for a company to pay off its supplier invoices.

Accounts Receivable Period

The typical period a firm takes to collect receivables from its clients.

Cash Cycle

The period between the outlay of cash for raw materials and receiving cash from customer payments, essentially measuring the time it takes for a company to turn its inventory into cash.