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According to CreditReport.com, the mean credit score in Georgia for 2007 was 668

ID: 3366577 • Letter: A

Question

According to CreditReport.com, the mean credit score in Georgia for 2007 was 668. Suppose that a hypothesis test is conducted to determine whether the mean credit score in Georgia has decreased since that time. Describe what a Type II error would mean in the context of this problem.

Reject H0 when actually the mean score has not decreased.

Do not reject H0 when the mean score has not decreased.

Reject H0 when actually the mean score has decreased.

Do not reject H0 when actually the mean score has decreased.

Explanation / Answer

Type II error in the following scenario:

Do not reject H0 when actually the mean score has decreased.

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