Question

A consumer advocacy group is doing a large study on car rental practices. Among other things,...

A consumer advocacy group is doing a large study on car rental practices. Among other things, the consumer group would like to do a statistical test regarding the mean monthly mileage, μ, of cars rented in the U.S. this year. The consumer group has reason to believe that the mean monthly mileage of cars rented in the U.S. this year is less than last year's mean, which was 2750 miles. The group plans to do a statistical test regarding the value of μ. It chooses a random sample of monthly mileages and computes the mean of the sample to be 2575 miles and the standard deviation to be 700 miles.

Based on this information, answer the questions below.

What are the null hypothesis (H0) and the alternative hypothesis (H1) that should be used for the test?

H0:μ is less than, less than or equal ,to greater than, greater than or equal to, not equal to, equal to 2575, 2750, or 700

H1:μ is less than, less than or equal to, greater than, greater than or equal to, not equal to, equal to 2575, 2750, or 700


In the context of this test, what is a Type II error?

A Type II error is rejecting, or failing to reject the hypothesis that μ is less than, less than or equal to, greater than, greater than or equal to, not equal to, equal to 2575, 2750, or 700 when, in fact, μ is less than, less than or equal to, greater than, greater than or equal to, not equal to, equal to 2575, 2750,or 700.

Suppose that the group decides not to reject the null hypothesis. What sort of error might it be making? Type I or Type II

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