Discrete Components Inc $\alpha$ = 005, the Appropriate Decision Is ___

question 43

Multiple Choice

Discrete Components Inc.manufactures a line of electrical resistors.Presently, the carbon composition line is producing 100 ohm resistors.The population variance of these resistors "must not exceed 4" to conform to industry standards.Periodically, the quality control inspectors check for conformity by randomly select 10 resistors from the line, and calculating the sample variance.The last sample had a variance of 4.36.Assume that the population is normally distributed.Using $\alpha$ = 0.05, the appropriate decision is ___.

• A)increase the sample size
• B)reduce the sample size
• C)reject the null hypothesis
• D)do not reject the null hypothesis
• E)maintain status quo

---

Definitions:

Risk Profile

A representation of an individual's or entity's exposure to risk, especially in terms of investment.

Prices

The amount of money required to purchase a good, service, or asset, often determined by supply and demand dynamics in the market.

Hedge

Investment protection method utilized to reduce the potential for financial loss by offsetting price movements in a related asset.