Think about the context of the claim.Determine whether you want to support or reject the claim.
a.State the null and alternative hypotheses in words.
b.Write the null and alternative hypotheses in appropriate symbols
c.Describe in words Type I error (the consequence of rejecting a true null hypothesis.)
d.Describe in words Type II error (the consequence of failing to reject a false null hypothesis.)
You represent a chemical company that is being sued for paint damage to automobiles. You want to support the claim that the mean repair cost per automobile is about $650. How would you write the null and alternative hypotheses?
a) The null hypothesis is that the population mean repair cost per automobile is about $650.
The alternate hypothesis is that the population mean repair cost per automobile is not $650.
b)
c) Type I error means that we have concluded that the mean repair cost is not $650 while it is true that the mean repair cost is $650
d) Type II error means that we have concluded that the mean repair cost is $650 while it is not true, the mean repair cost is not $650
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