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A Large Software Development Firm Recently Relocated Its Facilities

question 5

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A large software development firm recently relocated its facilities.Top management is interested in fostering good relations with their new local community and has encouraged their professional employees to engage in local service activities.They believe that the firm's professionals volunteer an average of more than 15 hours per month.If this is not the case, they will institute an incentive program to increase community involvement.Based on data collected they perform the appropriate hypothesis test.A Type II error in this context means
I.They failed to detect that the average number of hours volunteered by the firm's professional employees is more than 15 hours when in fact it is.
II.They would decide not to institute an incentive program to increase community involvement when they should have.
III.They would waste money instituting an incentive program to increase community involvement among its professional employees that was not needed.

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Definitions:

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