A Contact Lens Wearer Read That the Producer of a New

question 31

Multiple Choice

A contact lens wearer read that the producer of a new contact lens boasts that their lenses are cheaper than contact lenses from another popular company. The null hypothesis H0: μold -μnew = 0 is tested against the alternative HA: μold -μnew > 0 . Which of the following would be a Type II error?

• A) Deciding that the new lenses are cheaper, when in fact they really are
• B) Deciding that the new lenses are cheaper, when in fact they are not
• C) Deciding that the new lenses are not really cheaper, when in fact they are
• D) Deciding that the new lenses are not really cheaper, when in fact they are not
• E) It does not matter.

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Definitions:

Direct Materials Cost

The cost of raw materials and components used to create a product.

Operations

The day-to-day activities necessary for a business or organization to function, including production, supply chain management, and distribution.

Cost of Goods Manufactured

The total cost of producing goods during a certain period, including raw materials, direct labor, and manufacturing overhead.

Operations

The day-to-day activities involved in running a business, including production, sales, and administration.