A Manufacturer Claims That Less Than 1% of All His

question 138

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 -1.96 and the level of significance is 0.01, what is your decision?

• A) You reject the null hypothesis.
• B) You have insufficient evidence to reject the null hypothesis.
• C) You accept 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:

Absolute Thresholds

The minimum intensity of stimulus that can be detected by the sensory systems at least 50% of the time.

Signal Detection Theory

Signal Detection Theory is a means to quantify the ability to discern between information-bearing patterns and random patterns that distract from the information.

Personal Expectations

Refers to individual beliefs about the likelihood of achieving future outcomes or events, deeply influencing personal goals, behavior, and achievement.

Sexual Orientation

An enduring sexual attraction toward members of one’s own sex (homosexual orientation), the other sex (heterosexual orientation), or both sexes (bisexual orientation).