Question

Duke Energy reported that the cost of electricity for an efficient home in a particular neighborhood of Cincinnati, Ohio, was $103 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 ≤ $103
H _a: μ > $103

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?

SelectCost of electricity in Cincinnati is higher.Cost of electricity in Chicago is higher.There is no statistically significant difference between the cost of electricity in Cincinnati and Chicago.Item 1

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

The Type I error is - Select your answer -acceptingrejectingItem 2 H ₀ when it is - Select your answer -truefalseItem 3 .

What are the consequences of making this error?

A type I error is SelectrejectingacceptingItem 4 the null hypothesis and assuming Chicago Selecthas higherhas lower or equaldoes not have higherItem 5 electricity costs than Cincinnati, when in fact it Selecthas higherhas lower or equaldoes not have lower or equalItem 6 electricity costs than Cincinnati.

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

The Type II error is - Select your answer -acceptingrejectingItem 7 H ₀ when it is - Select your answer -truefalseItem 8 .

What are the consequences of making this error?

A type II error is SelectrejectingacceptingItem 9 the null hypothesis and assuming Chicago Selecthas higherdoes not have higherdoes not have lower or equalItem 10 electricity costs than Cincinnati, when in fact it Selecthas higherhas lower or equaldoes not have higherItem 11 electricity costs than Cincinnati.

Answer 1

SOLUTION:-

a).

As Null hypothesis can't be accepted, at that point we presume that the mean expense of power in Illinois is higher than that of Cincinnati.

b).Type I error:-

• A Type I blunder is inaccurately dismissing Ho when it is valid.
• Here, a sort 1 mistake is reasoning that the mean expense of power in Illinois is higher than that of Cincinnati, when actually, it isn't.

c).Type II error:-

• A Type II mistake is mistakenly neglecting to dismiss Ho when it is false.
• A sort II blunder is inferring that the mean expense of power in Illinois isn't higher than that of Cincinnati,