# Type I error, Type II error, confidence interval

1. A Type II error is committed when

a) we reject a null hypothesis that is true.

b) we don't reject a null hypothesis that is true.

c) we reject a null hypothesis that is false.

d) we don't reject a null hypothesis that is false.

2. A Type I error is committed when

a) we reject a null hypothesis that is true.

b) we don't reject a null hypothesis that is true.

c) we reject a null hypothesis that is false.

d) we don't reject a null hypothesis that is false.

3. An economist is interested in studying the incomes of consumers in a particular region. The population standard deviation is known to be $1,000. A random sample of 50 individuals resulted in an average income of $15,000. What is the upper end point in a 99% confidence interval for the average income?

a) $15,052

b) $15,141

c) $15,330

d) $15,364

I need detail explanation.

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#### Solution Preview

1. A Type II error is committed when

a) we reject a null hypothesis that is true.

b) we don't reject a null hypothesis that is true.

c) we reject a null hypothesis that is false.

d) we don't reject a null hypothesis that is false.

Answer: a) we reject a null hypothesis that is true.

Accept Ho Reject Ho

Ho is True Correct Decision "Type I Error

"

Ho is False "Type II Error

" Correct Decision

2. A Type I error is committed ...

#### Solution Summary

Answers 3 multiple choice questions on Type I error, Type II error, confidence interval.