Question

Determine whether the outcome of the following hypothesis test was a correct decision, a type I error, or a type II error. Claim: "Less than 40% of college students graduate with student loan debt." A hypothesis test of this claim resulted in the decision to reject H0. The actual percentage of college graduates with student loan debt is 45%.

Answer 1

Explanation:

The claim: "Less than 40% of college students graduate with student loan debt."

The null hypothesis: more than 40% of college students graduate with student loan debt." p >= 40%

If the actual percentage of college graduates with student loan debt is 45%. The researcher was supposed to fail to reject the null but since he rejected it when it was actually true, it is a type I error.

A type I error occurs when the research rejects the null when it is actually true.