Question

In April of 2011, the unemployment rate in Canada was reported to be 7.6%. Suppose that...

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.

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Answer #1

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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