Consumers Energy states that the average electric bill across the state is $67.1

ID: 3386839 • Letter: C

Question

Consumers Energy states that the average electric bill across the state is $67.16. You want to test the claim that the average bill amount is actually greater than $67.16. The hypotheses for this situation are Null Hypothesis: 67.16, Alternative Hypothesis: > 67.16. If the true statewide average bill is $51.28 and the null hypothesis is not rejected, did a type I, type II, or no error occur?

A. Type I Error has occured.

B. No error has occured.

C. We do not know the degrees of freedom, so we cannot determine if an error has occured.

D. Type II Error has occured

E. We do not know the p-value, so we cannot determine if an error has occured.

Explanation / Answer

B. No error has occured

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Consumers Energy states that the average electric bill across the state is $88.0

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Consumers Energy states that the average electric bill across the state is $67.1

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