A Manufacturer Claims That Less Than 1% of All His $\alpha$

question 11

Short Answer

A manufacturer claims that less than 1% of all his products do not meet the minimum government standards. A survey of 500 products revealed ten did not meet the standard. What is the critical value, if $\alpha$ =.01? _____________

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Definitions:

Behavioral Economics

A branch of economics focusing on how psychological, cognitive, emotional, cultural, and social influences impact the economic choices made by individuals and institutions.

Threat of Rejection

The fear or concern that one's ideas, actions, or presence will not be accepted by others.

Behavioral Economics

A field of economics that examines the effects of psychological, cognitive, emotional, cultural, and social factors on economic decisions.

Neoclassical Economic Model

An economic theory that focuses on how the equilibrium state of markets is reached through supply and demand forces, emphasizing utility maximization and profit maximization.