Question

Carpetland carpet installers incur an average cost of $300 for each carpet installed. Joan Chin, the firm’s vice president, proposes a new procedure for installations, which she hopes will be more efficient. Joan plans to run a trial and hopes that the results of a trial period will enable her to conclude with a level of significance of 0.05 that the new procedure reduces the average cost to install a carpet. If Joan's hypothesis test results in a Type II error, what would this mean?

Answer 1

A Type II error happens when the null hypothesis failed to be rejected, although it is false and the alternative hypothesis is true.

In this context, would be that the test does not give enough evidence to support the claim that the new procedure reduces the average cost, although it really does reduces it.

The new procedure is effective, but the sample does not give enough evidence.

Explanation: