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

question 148

Multiple Choice

SCENARIO 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 Scenario 9-2,what is the power of the test?

• A)0.13
• B)0.16
• C)0.84
• D)0.87

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Definitions:

Timing Difference

The discrepancy that arises between the recognition of revenue or expenses in accounting records and the actual receipt or payment of cash.

Bank Balance

The amount of money held in a bank account at a given moment.

Book Balance

The balance of an account according to the accounting records, before any adjustments for reconciling items.

Check Register

A record of transactions in a checking account, including deposits, checks, and withdrawals.