It is estimated that the average person in the United States uses 123 gallons of
ID: 3367318 • Letter: I
Question
It is estimated that the average person in the United States uses 123 gallons of water per day. Some environmentalists believe this figure is too high and conduct a survey of 40 randomly selected Americans. They find a mean of 113.03 gallons and a population standard deviation of 25.99 gallons. The environmentalists calculate a p-value for this test statistic at p < .0075, and test the hypothesis at ? = .01. If the environmentalists reject the null hypothesis did they make:
The correct decision?
A Type I error
A Type II error
Explain your answer to a.
Explanation / Answer
If p - value is less than ? then we reject the null hypothesis. Here,
p - value < 0.0075 which is ultimately less than 0.01, we should reject the null hypothesis and the environmentalists did reject the null hypotheis. Hence,
They made the correct decision.
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