It Is Claimed That in a Bushel of Peaches, Less

question 166

Multiple Choice

It is claimed that in a bushel of peaches, less than 10% are defective. A sample of 400 peaches is examined and 50 are found to be defective. If α = 0.025, what will be the decision?

• A) Accept the null.
• 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.

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Definitions:

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, typically a percentage of the sale.

360-Day Year

An accounting convention that uses 360 days in a year for calculating interest on loans and other financial instruments.

Commission

A service charge assessed by a broker or agent for providing assistance in the execution of a transaction.

Accrued Interest

Interest that has been earned but not yet paid.