In April of 2011, the unemployment rate in Canada was reported to be 7.6%. Suppose that Statistics Canada claims that the current unemployment rate is lower than that of April 2011. Suppose you wish to conduct a test to determine if the current unemployment rate is lower than that of April 2011. Identify the Type II error in this context.
From given information the null and alternative hypotheses are,
Type I Error : A type I error would occur if in fact the current unemployment rate is 7.6% ( ) , but the results of the sampling leads to the conclusion that the current unemployment rate is lower than 7.6% ( )
Type II Error : A type II error would occur if in fact that the current unemployment rate is lower than 7.6% ( ) but the result of the sampling fail to lead to the conclusion that it is lower than 7.6% ( )
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