Carter Motor Company claims that of the people who currently own their sedan, th

Question

Carter Motor Company claims that of the people who currently own their sedan, the Libra, 38% would buy another Libra in the future. Identify the type I error. A) The error of rejecting the claim that the percentage is 38% when it actually is not 38%. B) The error of failing to reject the claim that the percentage is 38% when it actually is not 38%. C) The error of rejecting the claim that the percentage is 38% when it actually is 38%. D) The error of failing to reject the claim that the percentage is 38% when it actually is 38%.

Explanation / Answer

Type-1error is the error of rejection of null hypothesis even it is true.

Hence here null hypothesis is the people who own sedan the libra out of them 38% would buy another libra

Hence in this context the type-1error is rejecting the claim that the percentage is 38% when actually it is 38%.

There fore option c is correct

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