Instruction 9-1 a Student Claims That She Can Correctly Identify Whether a Whether

question 23

Multiple Choice

Instruction 9-1
A student claims that she can correctly identify whether a person is studying a business or science major by the way the person dresses. Suppose in actuality that if someone is studying a business major, she can correctly identify that person as a business student 87% of the time. When a person is studying a science major, the student will incorrectly identify that person as a business student 16% of the time. Presented with one person and asked to identify the area of study of this person (who is studying either a business or science major) , she considers this to be a hypothesis test with the null hypothesis being that the person is a business student and the alternative that the person is a science student.
-Referring to Instruction 9-1,what is the "actual confidence coefficient"?

• A) 0.13
• B) 0.16
• C) 0.84
• D) 0.87

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Definitions:

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy, often impacted by inflation.

Fixed Exchange Rates

A currency system where the value of a country's currency is pegged at a fixed rate to another currency or a basket of currencies, making it stable against those currencies.

Foreign Exchange Reserves

Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies, used to back liabilities and influence monetary policy.

Domestic Money Supply

Refers to the total amount of money available within a country's economy at a specific time, including cash, coins, and balances held in bank accounts.