Question
According to a report, the standard deviation of monthly cell phone bills was $49.42 three years...
According to a report, the standard deviation of monthly cell phone bills was $49.42 three years ago. A researcher suspects that the standard deviation of monthly cell phone bill 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
Null hypothesis:
The standard deviation of monthly cell phone bills is same as $4942
Alternate hypothesis:
The standard deviation of monthly cell phone bills is less than $4942
type I error : Rejecting the null hypothesis when it is true
Claiming that the standard deviation is less than 4942 but it is actually not
type II error : Accepting the null hypothesis when it is false
Claiming that the standard deviation is 4942 but it is less than that
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