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According to a food website, the mean consumption of popcorn annually by America

ID: 3321586 • Letter: A

Question

According to a food website, the mean consumption of popcorn annually by Americans is 60 quarts. The marketing division of the food website unleashes an aggressive campaign designed to get Americans to consume even more popcorn. Complete parts (a) through (c) below.

A sample of 836 Americans provides enough evidence to conclude that marketing campaign was effective. Provide a statement that should be put out by the marketing department.

Suppose, in fact, the mean annual consumption of popcorn after the marketing campaign is 60 quarts. Has a Type I or Type II error been made by the marketing department? If we tested this hypothesis at the alpha=0.01 level of significance, what is the probability of committing this error? Select the correct choice below and fill in the answer box within your choice.(Type an integer or a decimal. Do not round.)

Explanation / Answer

below are the null and alternate hypothesis for this test
H0: mu = 60
H1: mu > 60

As there is significant evedince to conclude that marketing campaing was successful i.e. consumption of popcorn is increased.

In this case we reject the null hypothesis and type I error occurs when we reject the null hypothesis incorrectly.

Here we see the possibility of type I error.

Type I error is the probability of rejecting the null hypothesis incorrectly and it is equal to the significance level of the hypothesis test. Hence type I error probability is 0.01

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