(a) Determine the null and alternative hypotheses, (b) explain what it would mea
ID: 3242253 • Letter: #
Question
(a) Determine the null and alternative hypotheses, (b) explain what it would mean to make a type I error, and (c) explain what it would mean to make a type II error. Three years ago, the mean price of a single-family home was exist243, 759. A real estate broker believes that the mean price has increased since then. a) Which of the following is the hypothesis test to be conducted? A. H_0: mu = exist243, 759: H_1: mu exist243, 759 (b) Which of the following is a type I error? A. The broker rejects the hypothesis that the mean price is exist243, 759, when it is the true mean cost. B. The broker rejects the hypothesis that the mean price is exist243, 759, when the true mean price is greater than exist243, 759. C. The broker fails to reject the hypothesis that the mean price is exist243, 759, when the true mean price is greater than exist243, 759. (c) Which of the following is a type II error? A. The broker fails to reject the hypothesis that the mean price is exist243, 759, when it is the true mean cost. B. The broker rejects the hypothesis that the mean price is exist243, 759, when it is the true mean cost. C. The broker fails to reject the hypothesis that the mean price is exist243, 759, when the true mean price is greater than exist243, 759.Explanation / Answer
1 (c) is correct because by definition of null hypothesis and alternative hypothesis.
2 (b) since type one error is probability of rejected null hypothesis when alternative hypothesis is true.
3(c) since type 2 error is probability of accepting null hypothesis when alternative hypothesis is true.
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