Suppose the national average dollar amount for an automobile insurance claim is

Question

Suppose the national average dollar amount for an automobile insurance claim is $732.97. You work for an agency in Michigan and you are interested in whether or not the state average is less than the national average. The hypotheses for this scenario are as follows: Null Hypothesis: 732.97, Alternative Hypothesis: < 732.97. Suppose the true state average is $693.97 and the null hypothesis is rejected, did a type I, type II, or no error occur?

Question 13 options:

A medical researcher wants to determine if the average hospital stay of patients that undergo a certain procedure is less than 6.4 days. The hypotheses for this scenario are as follows: Null Hypothesis: 6.4, Alternative Hypothesis: < 6.4. If the actual mean is 3.2 days and the null hypothesis is not rejected, did a type I, type II, or no error occur?

Question 14 options:

1) Type II Error has occured 2) No error has occured. 3) We do not know the degrees of freedom, so we cannot determine if an error has occured. 4) We do not know the p-value, so we cannot determine if an error has occured. 5) Type I Error has occured.

Explanation / Answer

Question 13:

Here as the true average is 693.97 which is less than the hypothesized value of 732.97 and therefore the null hypothesis was false and if it was rejected as given in the given problem therefore there was no error made.

Therefore 2) No error has occured is the correct answer.

Question 14:

Here the actual mean is 3.2 days and therefore the null hypothesis is false here but as it is not rejected here, thereis an error made.

The incorrect retaining of a false null hypothesis is said to be called a type II error.

Therefore 3) is the correct answer here.

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