The Owner of a Small Clothing Store Is Concerned That

question 54

Essay

The owner of a small clothing store is concerned that only 28% of people who enter her store actually buy something. A marketing salesman suggests that she invest in a new line of celebrity mannequins (think Seth Rogan modeling the latest jeans…). He loans her several different "people" to scatter around the store for a two-week trial period. The owner carefully counts how many shoppers enter the store and how many buy something so that at the end of the trial she can decide if she'll purchase the mannequins. She'll buy the mannequins if there is evidence that the percentage of people that buy something increases.
-In this context describe a Type I error and the impact such an error would have on the store.

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Definitions:

Lay Epistemology

It involves the methods and theories that non-experts use to acquire and justify knowledge in everyday life.

Preexisting Belief

A belief or opinion held before being exposed to new information or evidence.

Cognitive Impairments

Refers to conditions that significantly restrict an individual's mental functioning, affecting memory, attention, and decision-making.

Lay Epistemology

The study of how ordinary people form beliefs, knowledge, and understanding about the world.