1. Ayoung couple plans to purchase a franchise. In a to average more than $15,000 in sales each month. random sample (size 30) from previous months' sa the hypotheses Ho: u=15,000 Ha: u to describe a Type I Error and its consequence for the c a. The couple, believing the average sales will be mor and may end up in bankruptcy. b. The couple, believing the average sales will be mor and may end up with a successful business. c. The couple, believing the average sales will be $15. and will miss out on an opportunity to own a succe d. The couple, believing the average sales will be $15, because they would have gone bankrupt with the ba The consequences of a Type I Error cannot be dete: e.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Topic Video
Question
1. Ayoung couple plans to purchase a franchise. In order to avoid bankruptcy, the couple needs
to average more than $15,000 in sales each month. Before signing the deal, they take a
random sample (size 30) from previous months' sales and conduct a test of significance. Use
the hypotheses
Ho: u=15,000 Ha: u>15,000
to describe a Type I Error and its consequence for the couple:
I
a. The couple, believing the average sales will be more than $15,000, will purchase the franchise
and may end up in bankruptcy.
b. The couple, believing the average sales will be more than $15,000, will purchase the franchise
and may end up with a successful business.
c. The couple, believing the average sales will be $15,000 or less, will not purchase the business
and will miss out on an opportunity to own a successful business.
d. The couple, believing the average sales will be $15,000 or less, will not purchase the business
because they would have gone bankrupt with the business.
The consequences of a Type I Error cannot be determined without an a-level.
e.
Transcribed Image Text:1. Ayoung couple plans to purchase a franchise. In order to avoid bankruptcy, the couple needs to average more than $15,000 in sales each month. Before signing the deal, they take a random sample (size 30) from previous months' sales and conduct a test of significance. Use the hypotheses Ho: u=15,000 Ha: u>15,000 to describe a Type I Error and its consequence for the couple: I a. The couple, believing the average sales will be more than $15,000, will purchase the franchise and may end up in bankruptcy. b. The couple, believing the average sales will be more than $15,000, will purchase the franchise and may end up with a successful business. c. The couple, believing the average sales will be $15,000 or less, will not purchase the business and will miss out on an opportunity to own a successful business. d. The couple, believing the average sales will be $15,000 or less, will not purchase the business because they would have gone bankrupt with the business. The consequences of a Type I Error cannot be determined without an a-level. e.
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Hypothesis Tests and Confidence Intervals for Proportions
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman