An Insurance Company Sets Up a Statistical Test with a Null

question 125

Multiple Choice

An insurance company sets up a statistical test with a null hypothesis that the average time for processing a claim is 7 days, and an alternative hypothesis that the average time for processing a claim is greater than 7 days. After completing the statistical test, it is concluded that the average time exceeds 7 days. However, it is eventually learned that the mean process time is really 7 days.
What type of error occurred in the statistical test?

• A) No error occurred in the statistical sense.
• B) Type II error
• C) Type I error
• D) Type III error

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Definitions:

Classical Conditioning

The conditioning process of repeatedly associating two stimuli together, such that a reaction first brought about by the second stimulus is later brought about by the first stimulus alone.

Misusing Punishment

The incorrect application of punishment that can lead to unwanted consequences, such as reinforcing the undesired behavior it seeks to discourage.

Observational Learning

The process of learning behaviors by watching and imitating others.

Learning Behaviors

Actions or processes through which individuals acquire new knowledge, skills, values, or preferences.