Consider the Following to Answer the Question(s) Below

question 16

Multiple Choice

Consider the following to answer the question(s) below:
Winnipeg Pet Plus believes that it has a market share of 25 percent of the local dog food market. It surveys 100 dog owners and ask whether or not it is their regular source of dog food, and 23 people say yes.
-In this context, committing a Type I error

• A) occurs when they conclude that the percentage of customers using Winnipeg Pet Plus for their dog food is not 25% when in fact it is
• B) occurs when they conclude that the percentage of customers using Winnipeg Pet Plus for their dog food is less than 25% when in fact it has not
• C) occurs when they conclude that the percentage of customers using Winnipeg Pet Plus for their dog food is 25% when in fact it has not
• D) occurs when they conclude that the percentage of customers using Winnipeg Pet Plus for their dog food is 25% when in fact it is less than that
• E) occurs when they conclude that the percentage of customers using Winnipeg Pet Plus for their dog food is more than 25% when in fact it is less than that

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Definitions:

Accounting Transactions

Economic events that require recording in the financial statements because they affect the assets, liabilities, or equity of a company.

Accounting Records

Documentation and books that keep track of the financial transactions of a business or individual, forming the basis for its financial statements.

Asset

Resources controlled by a business from which future economic benefits are expected to flow to the business, including both physical items and intangible properties.