Question

According to the February 2008 Federal Trade Commission report on consumer fraud and identity theft, 23% of all complaints in 2007 were for identity theft. In that year, Alaska had 321 complaints of identity theft out of 1,432 consumer complaints ("Consumer fraud and," 2008). Does this data provide enough evidence to show that Alaska had a lower proportion of identity theft than 23%? State the type I and type II errors in this case, consequences of each error type for this situation, and the appropriate alpha level to use.

Answer 1

Solution:

In this scenario, the type I error is locution that the proportion of complaints from fraud in alaska is a smaller amount than twenty third, once it's twenty third.One consequence of this error is that the Federal Trade Commission (FTC) would assume that fraud isn’t as huge as a haul once it's.

Thus, the FTC might not place the maximum amount effort into stopping or investigation fraud in alaska because it ought to.

Type II error: locution that the proportion of complaints from fraud in American state is twenty third, once it's but twenty third. One consequence of this error is that the Federal Trade Commission would place additional effort into alaska then it has to. Thus, resources that might be used alternative places are wasted in alaska. the most effective alpha level during this case would be 1 Chronicles, since a kind I error appearance to possess worse consequences than a kind II error.