Suppose the national average dollar amount for an automobile insurance claim is

Question

Suppose the national average dollar amount for an automobile insurance claim is $745.13. You work for an agency in Michigan and you are interested in whether or not the state average is greater than the national average. The hypotheses for this scenario are as follows: Null Hypothesis: 745.13, Alternative Hypothesis: > 745.13. Suppose the true state average is $680.82 and the null hypothesis is not rejected, did a type I, type II, or no error occur?

1)

2)

3)

4)

5)

Consumers Energy states that the average electric bill across the state is $55.43. You want to test the claim that the average bill amount is actually less than $55.43. The hypotheses for this situation are as follows: Null Hypothesis: 55.43, Alternative Hypothesis: < 55.43. If the true statewide average bill is $22.03 and the null hypothesis is rejected, did a type I, type II, or no error occur?

1)

2)

3)

4)

5)

1)

Type I Error has occured.

2)

No error has occured.

3)

We do not know the p-value, so we cannot determine if an error has occured.

4)

We do not know the degrees of freedom, so we cannot determine if an error has occured.

5)

Type II Error has occured

Explanation / Answer

a) Option - 2) no error has occured.

b) Option - 5) no error has cuuured.

  

  

  

  

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