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:

Operating Costs

Operating costs are expenses associated with the maintenance and administration of a business on a day-to-day basis.

Depreciation Expense

The allocated portion of the cost of a fixed asset, written off each year over the asset's useful life for accounting and tax purposes.

Scarcity

Occurs when the amount people desire exceeds the amount available at a zero price.

Choice

The act of selecting between two or more possibilities, often present in decision-making processes.