It Is Claimed That in a Bushel of Peaches, Less $\alpha$

question 61

Multiple Choice

It is claimed that in a bushel of peaches, less than ten percent are defective. A sample of 400 peaches is examined and 50 are found to be defective. If $\alpha$ = 0.025, what will be the decision?

• A) Fail to reject the null and conclude the defects are not greater than 10%
• B) Reject the null and conclude the defects are not greater than 10%
• C) Reject the null and conclude the defects are greater than 10%
• D) Fail to reject the null and conclude the defects are not less than 10%

---

Definitions:

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Exchange Rates

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of the other.

Forward Exchange Contract

An agreement to exchange currencies at a specified rate on a predetermined future date, used to hedge against currency risk.

Net Income

The net income of a company, calculated by deducting all costs and taxes from the overall revenue.