A Under the Code, What Constitutes an "Express" Warranty? How

question 73

Essay

a. Under the Code, what constitutes an "express" warranty? How does an express warranty arise?
b. Which of the following would be an express warranty? Explain.
(1) "This is the best computer available in town."
(2) "This car has new brakes."
(3) "This sample is just like the one in the box."
(4) "In my opinion, this is a better video recorder than the one made by RCA."
(5) "As a mechanic, I think this car is in good running order and should give you no problems for at least three months."

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Definitions:

Test Statistic

A calculated value from sample data that is used in a hypothesis test to decide whether to reject the null hypothesis.

Level of Significance

A criterion for judging the strength of evidence provided by the data against the null hypothesis, often denoted by alpha.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, used to assess the evidence against the null hypothesis.

Type I Error

The error that occurs in hypothesis testing when a true null hypothesis is incorrectly rejected, often referred to as a "false positive."