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Citizens is more c al cent

Citizens is more c al cent

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**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.
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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