Identify the Type I Error or Type II Error as Indicated

question 36

Multiple Choice

Identify the Type I error or Type II error as indicated.
-A manufacturer claims that the mean amount of juice in its 16 ounce bottles is 16.1 ounces. A consumer advocacy group wants to perform a hypothesis test to determine whether the mean amount is actually less than this. The
Hypotheses are:

$$\begin{array} { l } \mathrm { H } _ { 0 } : \mu = 16.1 \text { ounces } \\\mathrm { H } _ { \mathrm { a } } : \mu < 16.1 \text { ounces }\end{array}$$
Identify the Type I error.

• A)Reject the claim that mean amount is 16.1 ounces when in fact the mean amount is less than 16.1 ounces.
• B)Fail to reject the claim that mean amount is 16.1 ounces when in fact the mean amount is less than 16.1 ounces.
• C)Reject the claim that mean amount is 16.1 ounces when in fact the mean amount is 16.1 ounces.
• D)Fail to reject the claim that mean amount is 16.1 ounces when in fact the mean amount is 16.1 ounces.

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Definitions:

Receiving Annually

Refers to receiving a particular sum or type of benefit every year.

Perpetually

Continuing forever or for an indefinite period without anticipated termination.

Cash Flow

The total sum of cash and cash-equivalents that flows in and out of a company.

Present Value

The worth at present of a future money amount or cash flow sequences, evaluated using a certain rate of return.