A Manufacturer Claims That the Mean Amount of Juice in Its

question 26

Multiple Choice

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:
$\mathrm{H}_{0}: \mu=16.1$ ounces
$\mathrm{H}_{\mathrm{a}}: \mu<16.1 \text { ounces }$
Suppose that the results of the sampling lead to rejection of the null hypothesis. Classify that conclusion as a Type I error, a Type II error, or a correct decision, if in fact the mean amount of juice, ?, is less than 16.1 ounces.

• A) Type II error
• B) Correct decision
• C) Type I error

---

Definitions:

U.S. Securities and Exchange Commission

A U.S. federal agency responsible for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry, the nation's stock and options exchanges, and other related activities and organizations.

Systematic Thinking

A methodical approach to problem solving or decision making that is organized and logical.

Moral Consequences

The outcomes of actions that are evaluated based on their rightness or wrongness according to ethical principles.

Bounded Ethicality

The concept that cognitive biases and organizational contexts can limit individuals’ ability to make ethically optimal decisions.