Question
According to a report, the standard deviation of monthly cell phone bills was $49.95 three years...
According to a report, the standard deviation of monthly cell phone bills was $49.95 three years ago. A researcher suspects that the standard deviation of monthly cell phone bills is less today.
(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
Homework Answers
Answer #1
(A) it is given that the researcher suspects that the standard deviation of monthly cell phone bills is less today. So, it is a left tailed hypothesis test
(B) Type I error is the rejection of a true null hypothesis
In this case, type I error would be the conclusion that the standard deviation of monthly cell phone bills is less than $49.95, when in fact, it is not less than $49.95.
(C)
Type II error is the failure to reject a false null hypothesis
In this case, type II error would be the conclusion that the standard deviation of monthly cell phone bills is $49.95, when in fact, it is less than $49.95.
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