Question

#14 Three years​ ago, the mean price of an existing​ single-family home was ​$243 comma 700. A real estate broker believes that existing home prices in her neighborhood are higher. ​(a) Determine the null and alternative hypotheses. ​(b) Explain what it would mean to make a Type I error. ​(c) Explain what it would mean to make a Type II error. ​(a) State the hypotheses. Upper H 0​: ▼ p sigma mu ▼ greater than less than not equals equals nothing Upper H 1​: ▼ p mu sigma ▼ not equals less than equals greater than nothing ​(Type integers or decimals. Do not round. Do not include the​ $ symbol in your​ answer.) ​(b) Which of the following is a Type I​ error? A. The broker fails to reject the hypothesis that the mean price is ​$243 comma 700​, when the true mean price is greater than ​$243 comma 700. B. The broker rejects the hypothesis that the mean price is ​$243 comma 700​, when it is the true mean cost. C. The broker rejects the hypothesis that the mean price is ​$243 comma 700​, when the true mean price is greater than ​$243 comma 700. D. The broker fails to reject the hypothesis that the mean price is ​$243 comma 700​, when it is the true mean cost. ​(c) Which of the following is a Type II​ error? A. The broker rejects the hypothesis that the mean price is ​$243 comma 700​, when it is the true mean cost. B. The broker fails to reject the hypothesis that the mean price is ​$243 comma 700​, when the true mean price is greater than ​$243 comma 700. C. The broker rejects the hypothesis that the mean price is ​$243 comma 700​, when the true mean price is greater than ​$243 comma 700. D. The broker fails to reject the hypothesis that the mean price is ​$243 comma 700​, when it is the true mean cost. Click to select your answer(s).

Answer 1