Question

1.Carpetland carpet installers incur an average cost of $300 for each carpet installed. Joan Chin, the firm’s vice president, proposes a new procedure for installations, which she hopes will be more efficient. Joan plans to run a trial and hopes that the results of a trial period will enable her to conclude with a level of significance of 0.05 that the new procedure reduces the average cost to install a carpet.

If Joan's hypothesis test results in a Type I error, what would be the result?

Group of answer choices

a)Carpetland fails to implement a new procedure that actually increases costs.

b)Carpetland implements a new procedure that actually increases costs.

c)Carpetland implements a new procedure that actually does not reduce costs.

d)Carpetland fails to implement a new procedure that actually reduces costs.

2.Carpetland carpet installers incur an average cost of $300 for each carpet installed. Joan Chin, the firm’s vice president, proposes a new procedure for installations, which she hopes will be more efficient. Joan plans to run a trial and hopes that the results of a trial period will enable her to conclude with a level of significance of 0.05 that the new procedure reduces the average cost to install a carpet.

If Joan's hypothesis test results in a Type II error, what would this mean?

a)Joan did not conduct her hypothesis test correctly because if she did she could not make a Type II error.

b)She failed to reject the alternative hypothesis when it was actually false.

c)She rejected the null hypothesis when it was actually true.

d)She rejected the alternative hypothesis when it was actually true.

e)She failed to reject the null hypothesis when it was actually false.

Answer #1

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