A Manufacturer Claims That Less Than 1% of All His

question 70

Multiple Choice

A manufacturer claims that less than 1% of all his products do not meet the minimum government standards. A survey of 500 products revealed ten did not meet the standard. If the z-statistic is -2.054 and the level of significance is 0.03, what is your decision?

• A) You reject the null hypothesis, and agree that less than 1% fail to meet government standards.
• B) You have insufficient evidence to reject the null hypothesis.
• C) You reject the alternate hypothesis and agree that less than 1% meet government standards.
• D) You should have used the t-test.

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Definitions:

Tolerance For Ambiguity

an individual's capacity to remain comfortable and function effectively in situations that are uncertain, complex, or lack clarity.

Social Entrepreneurs

Entrepreneurs who focus on developing businesses and initiatives that aim to address and solve societal and environmental issues.

Socialistic Economies

Economic systems where the means of production, distribution, and exchange are owned or regulated by the community as a whole.

Free Market Economies

Economic systems where prices for goods and services are determined by the open market and consumers, with minimal government intervention.