Consider the Following to Answer the Question(s) Below

question 1

Multiple Choice

Consider the following to answer the question(s) below:
A company manufacturing computer chips finds that 8% of all chips manufactured are defective. Management is concerned that high employee turnover is partially responsible for the high defect rate. In an effort to decrease the percentage of defective chips, management decides to provide additional training to those employees hired within the last year. After training was implemented, a sample of 450 chips revealed only 27 defects. Was the additional training effective in lowering the defect rate?
-Which of the following statement is true about this hypothesis test?

• A) It is a two-tailed test about a proportion.
• B) It is a one-tailed test about a mean.
• C) It is a one-tailed test about a proportion.
• D) It is a two-tailed test about a mean.
• E) No hypothesis test can be conducted with the given information.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed on their income or profits.

Market Value

The existing market price for buying or selling an asset or service.

Accounting Profit

Net income as reported on the financial statements, which includes revenue minus expenses, excluding the cost of capital.

Depreciated Value

The reduced valuation of an asset after accounting for wear and tear, age, or obsolescence.