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.

---

Definitions:

Efficiency

The optimal production and distribution of resources in a way that maximizes the net benefit to society or an economy.

Total Surplus

A measure of society's overall net advantage resulting from the consumption and production of a good or service, comprised of both consumer and producer surplus.

Fire Marshal

An official responsible for enforcing fire safety codes and regulations, as well as investigating fires to determine their cause.

Total Surplus

In economics, the total net gain to society from trading in a market, equal to the sum of consumer and producer surplus.