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:

High-margin Items

Products or services that generate a significantly higher percentage of profit relative to their sales price.

Incremental Analysis

An analytical approach that focuses only on those costs and revenues that change as a result of a decision.

Break-even Point

The point at which total revenues equal total costs, resulting in no net loss or gain for the business.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance, providing stability to a company's expense structure.