Carpetland salespersons average $7,000 per week in sales. Steve Contois, the firm's vice president, proposes a compensation plan with new selling incentives. Steve hopes that the results of a trial selling period will enable him to conclude that the compensation plan increases the average sales per salesperson. (a) Develop the appropriate null and alternative hypotheses. H0: ? ≥ 7,000 Ha: ? < 7,000 H0: ? = 7,000 Ha: ? ≠ 7,000 H0: ? < 7,000 Ha: ? ≥ 7,000 H0: ? > 7,000 Ha: ? ≤ 7,000 H0: ? ≤ 7,000 Ha: ? > 7,000 (b) What is the type I error in this situation? What are the consequences of making this error? It would be concluding ? ≤ 7,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales.It would be concluding ? < 7,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales. It would be concluding ? ≥ 7,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help.It would be concluding ? > 7,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help. (c) What is the type II error in this situation? What are the consequences of making this error? It would be concluding ? ≤ 7,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales.It would be concluding ? < 7,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales. It would be concluding ? ≥ 7,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help.It would be concluding ? > 7,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter4: Equations Of Linear Functions

Section4.5: Correlation And Causation

Problem 18HP

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Carpetland salespersons average $7,000 per week in sales. Steve Contois, the firm's vice president, proposes a compensation plan with new selling incentives. Steve hopes that the results of a trial selling period will enable him to conclude that the compensation plan increases the average sales per salesperson.

(a)

Develop the appropriate null and alternative hypotheses.

H₀: ? ≥ 7,000

H_a: ? < 7,000

H₀: ? = 7,000

H_a: ? ≠ 7,000

H₀: ? < 7,000

H_a: ? ≥ 7,000

H₀: ? > 7,000

H_a: ? ≤ 7,000

H₀: ? ≤ 7,000

H_a: ? > 7,000

(b)

What is the type I error in this situation? What are the consequences of making this error?

It would be concluding ? ≤ 7,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales.It would be concluding ? < 7,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales. It would be concluding ? ≥ 7,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help.It would be concluding ? > 7,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help.

(c)

What is the type II error in this situation? What are the consequences of making this error?

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