The U.S. Department of Labor and 6.1% for the month ir the U.S. and claims the u

Question

The U.S. Department of Labor and 6.1% for the month ir the U.S. and claims the unemployment has declined for the last two months. However, the states statistics reveal that there is no reduction in the U.S. unemployment rate (reality). Identify the Type I error in this context. The U.S. report sampled only a dozen unemployed workers. The U.S. report shows there is change in unemployment, but in fact the unemployment rate has not changed. The statewide report concludes that unemployment has not declined since the unemployment rate decrease. The statewide report concludes that unemployment has not declined, but in fact there is no change ir unemployment. The product of the states sample size and sample proportion was less than 10.

Explanation / Answer

Correct option:

B) The U.S. report shows there is change in unemployment , but in fact the unemployment rate has not changed.

REASON:

Type I Error: Incorrect rejection of a true null hypothesis,i.e., fase positive.

Here,

H0: Null hypothesis: unemployent has declined for the last two months.

Reality: There is no reduction in unemployment rate.

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