The Manager of the Quality Department for a Tire Manufacturing

question 59

True/False

The manager of the quality department for a tire manufacturing company wants to know the average tensile strength of rubber used in making a certain brand of radial tire.The population is normally distributed,and the population standard deviation is known.She uses a z test to test the null hypothesis that the mean tensile strength is 800 pounds per square inch.The calculated z test statistic is a positive value that leads to a p-value of .045 for the test.If the significance level (α)is .05,the null hypothesis would be rejected.

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Definitions:

Call Provisions

Terms in a bond contract that allow the issuer to repurchase and retire the bond at a specified price before maturity, protecting against interest rate risk.

Bond Indenture

A legal contract between a bond issuer and a bondholder, detailing the terms of the bond such as the coupon rate, maturity date, and obligations of the issuer.

Call Provision

A clause in a bond or other fixed-income security that allows the issuer to repay the principal before the maturity date.

Sinking Fund

A savings fund into which an organization sets aside money over time, intended to pay off a debt or bond at its maturity or to meet a future capital expense.