An insurance company states that their claim office is able to process all death

Question

An insurance company states that their claim office is able to process all death claims within 3 working days. Recently there have been several complaints that it took longer than 3 days to process a claim. Top management wants sure that the situation is status quo and sets up a statistical test with null hypothesis that the time for processing a claim is 3 days, and an alternative hypothesis that the average time for processing a claim is greater than 3 days. After completing the statistical test, it is concluded that the average exceed 3 days. However, it is eventually learned that the mean process time is really 3 days. What type of error occurred in the statistical test? Type I error Type III error Type Il error No error occurred in the statistical sense.

Explanation / Answer

It is given that the null hypothesis is coming out to be false whereas it is actually true. This is type 1 error

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