An Insurance Company Sets Up a Statistical Test with a Null

question 105

Multiple Choice

An insurance company sets up a statistical test with a null hypothesis that the average time for processing a claim is 4 days, and an alternative hypothesis that the average time for processing a claim is greater than 4 days. After completing the statistical test, it is concluded that the average time exceeds 4 days. However, it is eventually learned that the mean process time is really 4 days. What type of error occurred in the statistical test?

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

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