In the Past, the Mean Running Time for a Certain $\mathrm { H } _ { 0 } : \mu = 9.8$

question 56

Multiple Choice

In the past, the mean running time for a certain type of flashlight battery has been 9.8 hours. The manufacturer has introduced a change in the production method and wants to perform a hypothesis test to determine whether the mean running time has increased as a result. The hypotheses are:
$\mathrm { H } _ { 0 } : \mu = 9.8$ hours
$\mathrm { H } _ { \mathrm { a } } : \mu > 9.8 \text { hours }$
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 running time has not increased.

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

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Definitions:

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount of income increases, placing a higher tax burden on high-income earners.

Taxable Income

Taxable income is the amount of income that is subject to income tax, after deductions and exemptions.

Percent

A method of representing a number as a part of 100.

Straight Commission

A compensation method where an employee or salesperson is paid solely based on the amount of sales generated.