A large school district notices that about 15% of its students drop out of schoo

Question

A large school district notices that about 15% of its students drop out of school. A company suggests the district try its new technology software designed to improve student motivation in the high school curriculum and, thus, lower the dropout rate. The new technology software is quite expensive, so the company offers a free, one-year trial period to determine whether the dropout rate decreases. If it works, the school district will pay for continued use of the software. What would happen if the school district makes a Type II error?

A. Claim the new technology software decreases the number of students who drop out, when it does decrease the number of dropouts.

B. Claim the new technology software decreases the number of students who drop out, when it does not decrease the number.

C. Claim the new technology software does not decrease the number of students who drop out, when it does decrease the number.

D. Claim the new technology software does not decrease the number of students who drop out, when it does not decrease the number.

E. Claim the new technology software increases the number of students who drop out, when it decreases the number.

Explanation / Answer

Ans:

For above case,hypothesis statement will be:

Null hypothesis,H0:p>=0.15 (i.e. does not decrease the drop out rate)

Alternative hypothesis,Ha:p<0.15 (i.e. decrease the drop out rate)

Type II error:when null hypothesis is false and we fail to reject it.

So,type II error will occur,when we claim that new technology software does not decrease the number of students who drop out,when it actually decrease the number.

Option C is correct.

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