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The mean price of mid-sized cars in a region is $32,000. A test is conducted to see if the claim is true. State the Type I and Type II errors in complete sentences.

Short Answer

Expert verified

Type I error : Rejection of the null hypothesis even if it's correct.

Type II error : No rejection of the alternative hypothesis even if it's false.

Step by step solution

01

introduction

Given,

The mean price of mid-sized cars in a region is$32,000.

02

explanation

In the case of the null hypothesis we have,

H0:μ=$32,000which implies the mean price of the of mid-sized cars in a region is$32,000.

In the case of the alternative hypothesis we have,

H1:μ≠$32,000which implies the mean price of the of mid-sized cars in a region is not $32,000.

Hence we get,

Type I error : Rejection of the null hypothesis even if it's correct.

Type II error : No rejection of the alternative hypothesis even if it's false.

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