Question

Duke Energy reported that the cost of electricity for an efficient home in a particular neighborhood of Cincinnati, Ohio, was $108 per month (Home Energy Report, Duke Energy, March, 2012). A researcher believes that the cost of electricity for a comparable neighborhood in Chicago, Illinois, is higher. A sample of homes in this Chicago neighborhood will be taken and the sample mean monthly cost of electricity will be used to test the following null and alternative hypotheses. H 0: μ ≤ $108 H a: μ > $108

a. Assume the sample data lead to rejection of the null hypothesis. What would be your conclusion about the cost of electricity in the Chicago neighborhood?

b. What is the Type I error in this situation?

The Type I error is - Select your answer -accepting rejecting Item 2 H ₀ when it is - Select your answer -true false Item 3 .

c. What are the consequences of making this error?

A type I error is Select rejecting accepting Item 4 the null hypothesis and assuming Chicago Select has higher has lower or equal does not have higher Item 5 electricity costs than Cincinnati, when in fact it Select has higher has lower or equal does not have lower or equal Item 6 electricity costs than Cincinnati.

d. What is the Type II error in this situation?

The Type II error is - Select your answer -accepting rejecting Item 7 H ₀ when it is - Select your answer -true false Item 8 .

e.What are the consequences of making this error?

A type II error is Select rejecting accepting Item 9 the null hypothesis and assuming Chicago Select has higher does not have higher does not have lower or equal Item 10 electricity costs than Cincinnati, when in fact it Select has higher has lower or equal does not have higherItem 11 electricity costs than Cincinnati.

Answer 1

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