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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