TABLE 9-2
A student claims that he can correctly identify whether a person is a business major or an agriculture major by the way the person dresses. Suppose in actuality that if someone is a business major, he can correctly identify that person as a business major 87% of the time. When a person is an agriculture major, the student will incorrectly identify that person as a business major 16% of the time. Presented with one person and asked to identify the major of this person (who is either a business or agriculture major), he considers this to be a hypothesis test with the null hypothesis being that the person is a business major and the alternative that the person is an agriculture major.
-Referring to Table 9-2, what is the "actual level of significance" of the test?
A) 0.84
B) 0.87
C) 0.13
D) 0.16

Question

Quizplus · Accepted Answer

The actual level of significance is the probability of rejecting the null hypothesis when it is actually true. In this case, rejecting the null hypothesis would mean identifying the person as an agriculture major. The probability of mistakenly identifying an agriculture major as a business major is 0.16. Therefore, the actual level of significance is 0.16 or 16%.

TABLE 9-2 a Student Claims That He Can Correctly Identify Whether a Whether