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

question 22

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 would be a Type I error?

• A) Saying that the person is a business major when in fact the person is a business major
• B) Saying that the person is a business major when in fact the person is an agriculture major
• C) Saying that the person is an agriculture major when in fact the person is a business major
• D) Saying that the person is an agriculture major when in fact the person is an agriculture major

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Definitions:

Semiannually

Occurring twice a year or every six months, often used in the context of payments, interest accrual, or reporting periods.

Average Inventory

An accounting measure used to estimate the value or quantity of inventory over a period, typically calculated as the sum of the starting and ending inventory divided by two.

Beginning Inventory

The value of a company’s inventory at the start of an accounting period, before any purchases or sales have occurred.

Quarterly

occurring every three months or four times a year, often used to describe the periodic reporting schedule of businesses and investments.