Instruction 9-2 a Student Claims That She Can Correctly Identify Whether a Whether

question 159

Multiple Choice

Instruction 9-2
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 9-2,what would be a Type I error?

• A)Saying that the person is a business student when in fact the person is a business student.
• B)Saying that the person is a science student when in fact the person is a business student.
• C)Saying that the person is a science student when in fact the person is a science student.
• D)Saying that the person is a business student when in fact the person is a science student.

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Definitions:

Fixed Cost

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, or loan payments.

Cost Behavior

The manner in which a cost changes in relation to its activity base (driver).

Activity Changes

Variations or alterations in the level of operations, processes, or actions within an organization that can impact performance and outcomes.

Total Variable Costs

The cumulative expenses that vary directly with the level of production or business activity.