Carpetland carpet installers earn an average profit of $300 for each carpet installed. Joan Chen, the firm's vice president, proposes a new procedure for installations, which she hopes will be more efficient. Joan hopes that the results of a trial period will enable her to conclude with a level of significance of 0.05 that the new procedure increases the average profit of installing a carpet. What will be the consequences if she makes a Type I error on her hypothesis test?

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hopes that the results of a trial period will enable her to conclude with a
level of significance of 0.05 that the new procedure increases the
average profit of installing a carpet.
What will be the consequences if she makes a Type I error on her
hypothesis test?
A Type I error would mean that Carpetland implements a new procedure
that actually decreases profits.
A Type I error would mean that Carpetland implements a new procedure
that actually increases profits.
A Type 1 error would mean that Carpetland does not implement a new
procedure that increases profits.
A Type I error would mean that Carpetland does not implement a new
procedure that decreases profits..
A Type I error would mean that Carpetland implements a new procedure
that actually does not increase profits.
A Type I error would mean that Carpetland implements a new procedure
that actually does not decrease profits.
Transcribed Image Text:hopes that the results of a trial period will enable her to conclude with a level of significance of 0.05 that the new procedure increases the average profit of installing a carpet. What will be the consequences if she makes a Type I error on her hypothesis test? A Type I error would mean that Carpetland implements a new procedure that actually decreases profits. A Type I error would mean that Carpetland implements a new procedure that actually increases profits. A Type 1 error would mean that Carpetland does not implement a new procedure that increases profits. A Type I error would mean that Carpetland does not implement a new procedure that decreases profits.. A Type I error would mean that Carpetland implements a new procedure that actually does not increase profits. A Type I error would mean that Carpetland implements a new procedure that actually does not decrease profits.
Carpetland carpet installers earn an average profit of $300 for each
carpet installed. Joan Chen, the firm's vice president, proposes a new
procedure for installations, which she hopes will be more efficient. Joan
hopes that the results of a trial period will enable her to conclude with a
level of significance of 0.05 that the new procedure increases the
average profit of installing a carpet.
What will be the consequences if she makes a Type I error on her
hypothesis test?
A Type I error would mean that Carpetland implements a new procedure
that actually does not decrease profits.
A Type I error would mean that Carpetland does not implement a new
procedure that decreases profits..
A Type I error would mean that Carpetland does not implement a new
procedure that increases profits.
A Type I error would mean that Carpetland implements a new procedure
that actually increases profits.
A Type I error would mean that Carpetland implements a new procedure
Transcribed Image Text:Carpetland carpet installers earn an average profit of $300 for each carpet installed. Joan Chen, the firm's vice president, proposes a new procedure for installations, which she hopes will be more efficient. Joan hopes that the results of a trial period will enable her to conclude with a level of significance of 0.05 that the new procedure increases the average profit of installing a carpet. What will be the consequences if she makes a Type I error on her hypothesis test? A Type I error would mean that Carpetland implements a new procedure that actually does not decrease profits. A Type I error would mean that Carpetland does not implement a new procedure that decreases profits.. A Type I error would mean that Carpetland does not implement a new procedure that increases profits. A Type I error would mean that Carpetland implements a new procedure that actually increases profits. A Type I error would mean that Carpetland implements a new procedure
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