A Professional Sports Organization Is Going to Implement a Test

question 50

Multiple Choice

A professional sports organization is going to implement a test for steroids.The test gives a positive reaction in 94% of the people who have taken the steroid.However,it erroneously gives a positive reaction in 4% of the people who have not taken the steroid.What is the probability of a Type I and Type II error using the null hypothesis "the individual has not taken steroids."

• A)Type I: 4%,Type II: 6%
• B)Type I: 6%,Type II: 4%
• C)Type I: 94%,Type II: 4%
• D)Type I: 4%,Type II: 94%

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Definitions:

Payback Period

The duration required for an investment to produce sufficient cash flow to recoup its original expense.

Depreciates

The process of allocating the cost of tangible assets over their useful lives, reflecting the decrease in value over time.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Required Rate

A specific rate of return or interest rate required by investors or lenders to compensate for the risk of an investment or loan.