Discrete Components, Inc $\alpha$ = 005, the Appropriate Decision Is _________________

question 72

Multiple Choice

Discrete Components, Inc.manufactures a line of electrical resistors.Presently, the carbon composition line is producing 100-ohm resistors.The population variance of these resistors "must not exceed 4" to conform to industry standards.Periodically, the quality control inspectors check for conformity by randomly select 10 resistors from the line, and calculating the sample variance.The last sample had a variance of 4.36.Assume that the population is normally distributed.Using $\alpha$ = 0.05, the appropriate decision is _________________.

• A)increase the sample size
• B)reduce the sample size
• C)reject the null hypothesis
• D)fail to reject the null hypothesis
• E)maintain status quo

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Definitions:

Economic Profits

The discrepancy between total income and overall expenses, encompassing all direct and indirect costs.

Production Costs

The total expenses incurred in the manufacture of a product, including raw materials, labor, and overhead.

Economic Profits

The surplus left after deducting both explicit and implicit costs from total revenues.

Savings Account

A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.