Question

Three years​ ago, the mean price of an existing​ single-family home was $243,799, A real estate broker believes that existing home prices in her neighborhood are higher.

​(a)	Determine the null and alternative hypotheses.
​(b)	Explain what it would mean to make a Type I error.
​(c)	Explain what it would mean to make a Type II error.

​(a) State the hypotheses.

H0​:

A.) pp

B.) sigmaσ

C.) muμ

A.) greater than>

B.) not equals≠

C.) equals=

B.) less than<

​$=____

Upper H1​:

A.) pp

B.) sigmaσ

C.) muμ

A.) greater than>

B.) not equals≠

C.) equals=

B.) less than<

$=_____

​(Type integers or decimals. Do not​ round.)

​(b) Which of the following is a Type I​ error?

A.The broker rejects the hypothesis that the mean price is $243,799

when the true mean price is greater than $243,799

B.The broker fails to reject the hypothesis that the mean price is $243,799 when it is the true mean cost.

C. The broker rejects the hypothesis that the mean price is $243, 799 w

D. he broker fails to reject the hypothesis that the mean price is ​$243, 799​ hen the true mean price is greater than$243,799

​(c) Which of the following is a Type II​ error?

A.The broker rejects the hypothesis that the mean price is $243,799 when it is the true mean cost

B. The broker rejects the hypothesis that the mean price is $243,799 when the true mean price is greater than $243,799

C.The broker fails to reject the hypothesis that the mean price is $243,799 when it is the true mean cost

D.The broker fails to reject the hypothesis that the mean price is $243 ,799 when the true mean price is greater than $243,799

Answer 1

Answer:

a)

H0: μ = $243,799

H1: μ > $243,799

b)

type I error occur when we reject the null hypothesis even though it is true.

C.The broker rejects the hypothesis that the mean price is $243,799 when it is the true mean cost

c)

type II error occur when we failed to reject the null hypothesis even though it is false.

D.The broker fails to reject the hypothesis that the mean price is $243 ,799

when the true mean price is greater than $243,799