A cellular phone company claims that the mean amount spend per month is more tha

Question

A cellular phone company claims that the mean amount spend per month is more than $75. A test is made of H0: = 75 versus Ha: > 75. The level of significance (i.e alpha) is 0.01 and the p-value is 0.000001 Consequently, if we use the p-value in determining significance, we would...

a) Accept the null hypothesis

b) Definitely cause a Type II error

c) Probably cause a Nihls-Rehmann error.

d) Definitely cause a type I error

e) Fail to reject the null hypothesis

f) Reject the null hypothesis

Business Analytics

Explanation / Answer

Ans:

Given that

p-value=0.000001

Significance level=0.01

As,p-value<0.01,we reject null hypothesis.

Option f is correct(Reject the null hypothesis)

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