A Contact Lens Wearer Read That the Producer of a New

question 9

Multiple Choice

A contact lens wearer read that the producer of a new contact lens boasts that their
Lenses are cheaper than contact lenses from another popular company. The null hypothesis $H _ { 0 } : \mu _ { \text {old } } - \mu _ { \text {new } } = 0$ is tested against the alternative $H _ { A } : \mu _ { \text {old } } - \mu _ { \text {new } } > 0$ . Which of the following would be a Type II error?

• A) Deciding that the new lenses are cheaper, when in fact they really are.
• B) Deciding that the new lenses are cheaper, when in fact they are not.
• C) Deciding that the new lenses are not really cheaper, when in fact they are.
• D) Deciding that the new lenses are not really cheaper, when in fact they are not.
• E) It does not matter.

---

Definitions:

Real Estate Market

A sector of the economy that deals with the buying, selling, and leasing of land, buildings, and properties.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature.

Recession

A significant decline in economic activity across the economy, lasting longer than a few months, typically visible in real GDP, real income, employment, industrial production, and retail sales.

Subdivision

A process of dividing land into pieces that are easier to sell or otherwise develop.