Assume That a Hypothesis Test of the Given Claim Will

question 39

Multiple Choice

Assume that a hypothesis test of the given claim will be conducted. Identify the type I or type II error for the test. A consumer advocacy group claims that the mean mileage for the Carter Motor Company's new sedan is less than 32 miles per gallon. Identify the type I error for the test.

• A) Reject the claim that the mean is equal to 32 miles per gallon when it is actually less than 32 miles per gallon.
• B) Fail to reject the claim that the mean is equal to 32 miles per gallon when it is actually less than 32 miles per gallon.
• C) Fail to reject the claim that the mean is equal to 32 miles per gallon when it is actually greater than 32 miles per gallon.
• D) Reject the claim that the mean is equal to 32 miles per gallon when it is actually 32 miles per gallon.

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Definitions:

Matching

An accounting principle that requires expenses to be matched with the revenues generated in the same period, ensuring accurate earnings measurement.