Which of the following represents a Type I error for the null and alternative hy

Question

Which of the following represents a Type I error for the null and alternative hypotheses H0: $3,200 and Ha: > $3,200, where is the average amount of money in a savings account for a person aged 30 to 40?

a.Type I error would occur if we reject H0 and conclude that the average amount is greater than $3,200 when in fact the average amount is $3,200 or less. b. A Type I error would occur if we fail to reject H0 and conclude that the average amount is $3,200 or less when in fact the average amount is greater than $3,200. c. A Type I error would occur if we fail to reject H0 and conclude that average amount is less than or equal to $3,200 when in fact the average amount is $3,200 or less. d. A Type I error would occur if we reject H0 and conclude that the average age is less than 30 when in fact the average age is greater than 40.

Explanation / Answer

Option A

The null hypothesis for the given problem is

H0: $3,200

Therefore, Type I error would occur if actual average is less than 3200 but we reject that, that means Null hypothesis is actually true and we are rejecting it.

We should accept if null hypothesis is true to avoid type I error.

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