The Next Questions Are Based on the Following Information

question 79

Multiple Choice

The Next Questions Are Based On The Following Information:
A small community college claims that their average class size is equal to 35 students.This claim is being tested with a level of significance equal to 0.02 using the following sample of class sizes: 42,28,36,47,35,41,33,30,39,and 48.Assume class sizes are normally distributed.
-The manufacturer of bags of cement claims that they fill each bag with at least 50.2 pounds of cement.Assume that the standard deviation for the amount in each bag is 1.2 pounds.The decision rule is adopted to shut down the filling machine if the sample mean weight for a sample of 40 bags is below 49.8.Suppose that the true mean weight of bags is 50 pounds.Using this decision rule,what is the probability of a Type II error?

• A)0.85
• B)0.70
• C)0.80
• D)0.75

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Definitions:

Year-End Inventory

The total value of a company's inventory at the end of its fiscal year.

Consignee's Location

The address or place where goods are to be delivered, typically belonging to the person or entity that will receive the goods.

Gross Profit Rate

An economic indicator that calculates the ratio of net income to sales revenue after deducting the cost of goods sold.

Net Sales

Revenue from sales minus returns, allowances, and discounts.