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(a) Determine the null and alternative hypotheses, (b) explain what it would mea

ID: 3300965 • 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 $243, 743. 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 = $243, 743: H_1: mu > $243, 743 B. H_0: mu = $243, 743: H_1: mu 1.3 B. H_0: sigma = 1.3;H_1: sigma notequalto 1.3 C. H_0: sigma = 1.3;H_1: sigma

Explanation / Answer

Answer:

10.1.17

b).

B. The broker rejects the hypothesis that the mean price is 243743 when it is the true mean cost.

(Type I error is the incorrectly rejection of a true null hypothesis.)

10.1.19

b).

A. The manager rejects the hypothesis that the pressure variability is 1.3 when it is the true pressure variability.

(Type I error is the incorrectly rejection of a true null hypothesis.)