Assume That a Hypothesis Test of the Given Claim Will

question 13

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:

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials or commissions.

True Performance

The actual output or results achieved by an employee, as opposed to perceived or estimated performance.

Canadian Companies

Businesses or corporations that are registered, based, or operate primarily in Canada.