Suppose your roommate believes the mean amount it will cost to repair your dorm
ID: 3382439 • Letter: S
Question
Suppose your roommate believes the mean amount it will cost to repair your dorm refrigerator is more than $50. To determine if she is correct, suppose you perform a hypothesis test with level of significance equal to 5%. For each choice below, determine if you made the correct decision or if you made an error. If an error was made, determine if a Type-I or Type-II error was committed.
a) You conclude that the mean amount to repair a dorm refrigerator IS more than $50 when in reality the mean amount to repair a dorm refrigerator is NOT more than $50.
b) You conclude that the mean amount to repair a dorm refrigerator is NOT more than $50 when in reality the mean amount to repair a dorm refrigerator is NOT more than $50.
c) You conclude that the mean amount to repair a dorm refrigerator is NOT more than $50 when in reality the mean amount to repair a dorm refrigerator IS more than $50.
d) You conclude that the mean amount to repair a dorm refrigerator IS more than $50 when in reality the mean amount to repair a dorm refrigerator IS more than $50..
Explanation / Answer
Suppose your roommate believes the mean amount it will cost to repair your dorm refrigerator is more than $50. To determine if she is correct, suppose you perform a hypothesis test with level of significance equal to 5%. For each choice below, determine if you made the correct decision or if you made an error. If an error was made, determine if a Type-I or Type-II error was committed.
a) You conclude that the mean amount to repair a dorm refrigerator IS more than $50 when in reality the mean amount to repair a dorm refrigerator is NOT more than $50.
Type I error ( rejecting true null hypothesis)
b) You conclude that the mean amount to repair a dorm refrigerator is NOT more than $50 when in reality the mean amount to repair a dorm refrigerator is NOT more than $50.
No error
c) You conclude that the mean amount to repair a dorm refrigerator is NOT more than $50 when in reality the mean amount to repair a dorm refrigerator IS more than $50.
Type II error ( fail to reject the false null hypothesis)
d) You conclude that the mean amount to repair a dorm refrigerator IS more than $50 when in reality the mean amount to repair a dorm refrigerator IS more than $50..
No error
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