Acompany manufacturing computer chips finds that 8% of all chips manufactured are defective. management is concerned that employee inattention is partially responsible for the high defect rate. in an effort to decrease the percentage of defective chips, management decides to offer incentives to employees who have lower defect rates on their shifts. the incentive program is instituted for one month. if successful, the company will continue with the incentive program.
1) write the company's null and alternative hypotheses.
2) in this context describe a type l error and the impact such an error would have on the company.
3) in this context describe a type ii error and the impact such an error would have on the company.
4) based on the data they collected during the trial program, management found that a 95% confidence interval for the percentage of defective chips was (5.0%, 7.0%), what conclusion should management reach about the new incentive program? explain.

The following selected circumstances relate to pending lawsuits for erismus, inc. erismus’s fiscal year ends on december 31. financial statements are issued in march 2019. erismus prepares its financial statements according to u.s. gaap. required: indicate the amount erismus would record as an asset, liability, or not accrued in the following circumstances. 1. erismus is defending against a lawsuit. erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000. 2. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely. 3. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages will eventually be $5,000,000, with a present value of $3,500,000. 4. erismus is a plaintiff in a lawsuit. erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000. 5. erismus is a plaintiff in a lawsuit. erismus’s management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $500,000.