9 Three years ago the mean price of a singlefamily home was

9) Three years ago, the mean price of a single-family home was $243,706. A real estate broker believes that the mean price has decreased since then.

(a) Which of the following is the hypothesis test to be conducted?

A) H0: u = $243,706; H1: u < $243,706

B) H0: u = $243,706; H1: u does not equal $243,706

C) H0: u = $243,706; H1: u > $243,706

(b) Which of the following is a type I error?

A) The broker rejects the hypothesis that the mean price is $243,706, when it is the true mean cost.

B) The broker fails to reject the hypothesis that the mean price is $243,706, when the true mean price is less than $243,706.

C) The broker rejects the hypothesis that the mean price is $243,706, when the true mean price is less than $243,706.

A) The broker fails to reject the hypothesis that the mean price is $243,706, when it is the true mean cost.

B) The broker rejects the hypothesis that the mean price is $243,706, when it is the true mean cost.

C) The broker fails to reject the hypothesis that the mean price is $243,706, when the true mean price is less than $243,706

(a)A

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(b) A

Type I error: We reject Ho when it is true.

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(c)B

Type II error: We do not reject Ho when it is false.