Carpetland salespersons average 8000 per week in sales Steve

Carpetland salespersons average $8000 per week in sales. Steve Contois, the firm\'s vice president, proposes a compensation plan with new selling incentives. Steve hopes that the results of a trial selling period will enable him to conclude that the compensation plan increases the average sales per salesperson.

a. Develop the appropriate null and alternative hypotheses.

b. In this situation, a Type I error would occur if it was concluded that the new compensation plan provides a population mean weekly sales .......... when in fact it does not.( <8000 / <=8000 / >8000 / >=80000/ =8000/ not = 8000)

c. In this situation, a Type II error would occur if it was concluded that the new compensation plan provides a population mean weekly sales ........... when in fact it does not. ( <8000 / <=8000 / >8000 / >=80000/ =8000/ not = 8000)

Solution

A)

As he hopes the average sales increases, then it goes to Ha,

Ho: u <= 8000
Ha: u > 8000 [ANSWER]

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b)

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

Thus,

ANSWER: >8000 [answer]

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C)

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

Thus,

ANSWER: <= 8000 [answer]