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

question 67

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 power of the test?

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

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Definitions:

Unusual Item

A term used in financial accounting to refer to gains or losses that are infrequent or unusual in nature, not part of the company's ordinary operations.

Accounting Method

A set of rules used to determine when and how income and expenses are reported in the financial statements.

Business Segment

A distinct part of a company that can be separated for analyzing its financial performance, often by product line or geographical location.

Independent Auditor's Report

A document provided by an independent auditor as a result of an audit or evaluation of a company's financial statements, giving an opinion on the financial statements' accuracy and compliance with accounting standards.