Determine the null and alternative hypotheses b explain what

Determine the null and alternative hypotheses, (b) explain what it would mean to make a type I error, and (c) explain what it would mean to make a type II error. Three years ago, the mean price of a single-family home was $243,721. A real estate broker believes that the mean price has increased since then. Which of the following is the hypothesis test to be conducted? Which of the following is a type I error? Which of the following is a type II error?

Solution

a)

The claim is that the mean increased, so, it is OPTION C. [ANSWER, C]

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b)

A type I error is incorrectly rejecting a true null hypothesis.

Thus, it is OPTION B. [ANSWER, B]

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C)

A type II error is incorrectly failing to reject a fals null hypothesis.

Thus, it is OPTION C. [ANSWER, C]