A Null Hypothesis Is π ≥ 0

question 45

Multiple Choice

A null hypothesis is π ≥ 0.65. To test this hypothesis, a sample of 400 is taken and alpha is set at 0.05. If the true proportion is π = 0.60, what is the power of the test?

• A) 0.33
• B) 0.45
• C) 0.95
• D) 0.67
• E) 0.77

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Definitions:

Net Operating Income

A company's income after all operating expenses, excluding taxes and interest, have been deducted from total revenue.

Price Reduction

A decrease in the selling price of a product or service, typically with the aim of increasing demand or sales volume.

Value-Based Pricing

A pricing strategy where the price is based on the perceived value of a product or service to the customer rather than on the cost of production or a traditional market price.

Operating Cost

Expenses associated with the day-to-day activities of running a business, excluding costs related to financing and investments.