What is the type II error in this situation? What are the consequences of making this error? It would be concluding ? ≤ 9,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales.It would be concluding ? < 9,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales.    It would be concluding ? ≥ 9,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help.It would be concluding ? > 9,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help.

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c. What is the type II error in this situation? What are the consequences of making this error?
It would be concluding ? ≤ 9,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales.It would be concluding ? < 9,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales.    It would be concluding ? ≥ 9,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help.It would be concluding ? > 9,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help.
Carpetland salespersons average $9,000 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.
lo Ho: us 9,000
H: u > 9,000
Ho: u > 9,000
H: HS 9,000
Ho: u < 9,000
H: H2 9,000
Ho: u = 9,000
H: u = 9,000
lo Ho: H 2 9,000
H: H < 9,000
(b) What is the type I error in this situation? What are the consequences of making this error?
O It would be concluding u s 9,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase
sales.
O It would be concluding u < 9,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase
sales.
O It would be concluding u 2 9,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help.
O It would be concluding u > 9,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help.
Transcribed Image Text:Carpetland salespersons average $9,000 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. lo Ho: us 9,000 H: u > 9,000 Ho: u > 9,000 H: HS 9,000 Ho: u < 9,000 H: H2 9,000 Ho: u = 9,000 H: u = 9,000 lo Ho: H 2 9,000 H: H < 9,000 (b) What is the type I error in this situation? What are the consequences of making this error? O It would be concluding u s 9,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales. O It would be concluding u < 9,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales. O It would be concluding u 2 9,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help. O It would be concluding u > 9,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help.
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