Question

The company leasing electric scooters performs a survey of their users in Richmond to ask if respondents would rent a scooter in weather below 50 degrees. The scooter company has previous data that indicates 10% of the population will rent a scooter in weather less than 50 degrees; but the company thinks the proportion may have increased due to higher gas prices. Pick the Type 1 error that could be present in their results:

a. the analysis indicates that statistically significantly more people will rent a scooter in weather less than 50 degrees when in fact, the population proportion of renters at <50 degrees has increased

b. the analysis indicates that there has not been a statistically significant shift in people who will rest a scooter in weather less than 50 degrees when in fact, the population proportion reenters at <50 degrees has changed

c. the analysis indicates there has not been a statistically significant shift in people who rent scooters in weather less than 50 degrees when in fact, the population proportion of renters at <50 has not changed

d. the analysis indicates that statistically significantly more people will rent a scooter in a weather less than 50 degrees when in fact, the population proportion of renters at <50 degrees has not changed

Answer 1

From the given information,

We know that,

Type I error is reject Ho when in fact it is true.

Hence,

The required correct answer is,

d. the analysis indicates that statistically significantly more people will rent a scooter in a weather less than 50 degrees when in fact, the population proportion of renters at <50 degrees has not changed.

i.e., Option d. is correct.

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Thank you.