Citizens is more c al cent
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Citizens in a growing community** want to build a school that is more convenient for their children to attend. They propose a 1 cent per dollar sales tax increase to pay for the school. They want the proposed sales tax increase to be submitted as a referendum in the upcoming county elections where a majority of yes votes makes the proposal law. A local journalist conducted a survey to see if the proposal will pass if placed on the ballot. She randomly selected 650 voters from the list of registered voters; 364 of these are in favor of the sales tax increase to fund construction of the school.
**Which of the following best describes a Type II Error for this hypothesis test?**
- Concluding that a majority of voters favor the sales tax increase when they do not.
- Concluding that a minority of voters favor the sales tax increase when they do not.
- Failing to conclude that a majority of voters favor the sales tax increase when they do.
- Failing to conclude that a minority of voters favor the sales tax increase when they do.
**Explanation**: A Type II error occurs when we fail to reject a false null hypothesis. In this context, it would mean not recognizing that the majority of voters actually support the sales tax increase when in reality they do.
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