Question

An article in a magazine on operations management recently stated that a formal hypothesis test rejected the hypothesis that employee productivity was at most $ 45.70 per hour in the wood processing industry. Given this conclusion, it is possible that a type I statistical error was made. Select one: True False

Answer 1

Answer: True

Explanation:

For given scenario of testing of hypothesis, we reject the null hypothesis that employee productivity was at most $45.70 per hour in the wood processing industry. Type I error is made when we reject the null hypothesis while the null hypothesis is true. Type II error is made when we do not reject the null hypothesis while the null hypothesis is not true. There would be some probability that the null hypothesis is true but we reject it, so type I statistical error was made.