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You are thinking about opening a restaurant and are searching for a good location. From research you have done, you he mean income of those living near the restaurant must be over $85,000 to support the type of upscale restaurant y pen. You decide to take a simple random sample of 50 people living near one potential location. Based on the mean his sample, you will perform a test of Ho: μ = $85,000 H₁:μ> $85,000 where μ is the true mean income in the population of people who live near the restaurant. Which of the following is not true regarding Type I and Type II errors in this setting? All of these statements are true

You are thinking about opening a restaurant and are searching for a good location. From research you have done, you he mean income of those living near the restaurant must be over $85,000 to support the type of upscale restaurant y pen. You decide to take a simple random sample of 50 people living near one potential location. Based on the mean his sample, you will perform a test of Ho: μ = $85,000 H₁:μ> $85,000 where μ is the true mean income in the population of people who live near the restaurant. Which of the following is not true regarding Type I and Type II errors in this setting? All of these statements are true

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section: Chapter Questions
Problem 9SGR
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You are thinking about opening a restaurant and are searching for a good location. From research you have done, you know that the mean income of those living near the restaurant must be over $85,000 to support the type of upscale restaurant you wish to open. You decide to take a simple random sample of 50 people living near one potential location. Based on the mean income of this sample, you will perform a test of Ho : μ = $85,000 Haμ> $85,000 where is the true mean income in the population of people who live near the restaurant. Which of the following is not true regarding Type I and Type II errors in this setting? All of these statements are true. A possible consequence of a Type I error here is you may open your restaurant in a location where the residents will not be able to support it, so your restaurant may go out of business. A Type I error occurs when you find convincing evidence that the mean income of all residents near the restaurant exceeds $85,000 when in reality it does not. A Type II error occurs when you do not find convincing evidence that the mean income of all residents near the restaurant exceeds $85,000 when in reality it does. A possible consequence of a Type II error here is you may not open your restaurant in a location where the residents would have been able to support it and you lose potential income.
Transcribed Image Text:You are thinking about opening a restaurant and are searching for a good location. From research you have done, you know that the mean income of those living near the restaurant must be over $85,000 to support the type of upscale restaurant you wish to open. You decide to take a simple random sample of 50 people living near one potential location. Based on the mean income of this sample, you will perform a test of Ho : μ = $85,000 Haμ> $85,000 where is the true mean income in the population of people who live near the restaurant. Which of the following is not true regarding Type I and Type II errors in this setting? All of these statements are true. A possible consequence of a Type I error here is you may open your restaurant in a location where the residents will not be able to support it, so your restaurant may go out of business. A Type I error occurs when you find convincing evidence that the mean income of all residents near the restaurant exceeds $85,000 when in reality it does not. A Type II error occurs when you do not find convincing evidence that the mean income of all residents near the restaurant exceeds $85,000 when in reality it does. A possible consequence of a Type II error here is you may not open your restaurant in a location where the residents would have been able to support it and you lose potential income.
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