Consider the following statements concerning decision making using the hypothesis testing methodology: A. A Type II...

Consider the following statements concerning decision making using the hypothesis testing methodology:

A.     A Type II error cannot occur if the null hypothesis is rejected.
B.     Type I and II errors can occur simultaneously.
C.     A Type I error can occur if the null hypothesis is rejected.

which statement（s） is/are true？

Expert Solution

Statements A and C are True

___________________________________

(A) A Type II error is defined as the failure to reject a false null hypothesis. If the null hypothesis has been rejected, then it eliminates the possibility of a Type II error. In Such a case, either to reject the null was the correct decision or a Type I error has been made. Therefore this statement is TRUE.

(B) When doing Hypothesis testing, we either Reject the Null hypothesis or we fail to Reject the Null Hypothesis. Either the decision was correct in either case or we have made a Type I error by rejecting the null or made a Type II error by not rejecting the null. There is no event or outcome where both Type I and Type II errors can occur simultaneously.

Therefore this statement is FALSE.

(C) A Type I error is defined as the incorrect rejection of the null hypothesis. If we have rejected the null hypothesis, we have either made the correct decision or made a Type I error. Therefore this statement is TRUE.

orchestra answered 1 year ago

Unit 6 [Hypothesis Testing/Decision Making] For all Hypothesis\Decision Making Problems, please do the following: ...

Unit 6 [Hypothesis Testing/Decision Making] For all Hypothesis\Decision Making Problems, please do the following: 1. Answer: Is the data discrete or continuous? 2. List the assumptions. 3. State the null and alternate hypothesis. 4 Write down the proper test statistic, Show all calculations, i.e. impute the numbers. . Set up Decision rules. Show the critical value. Reject or Fail to reject. 5. State your conclusions. 6.2.1 A sample of...

Consider the following statements: i) Power + P(Type II Error) = 1. (ii) If a hypothesis...

Consider the following statements: i) Power + P(Type II Error) = 1. (ii) If a hypothesis test is performed at the 5% significance level, and if the null hypothesis is actually true, then there is a 5% chance that the null hypothesis will be rejected. (iii) If a hypothesis is tested at the 5% significance level with a given data set, then there is a lower chance that the null hypothesis will be rejected than if that same hypothesis is...

v Unit 6 [Hypothesis Testing/Decision Making] For all Hypothesis\Decision Making Problems, please do the following:...

v Unit 6 [Hypothesis Testing/Decision Making] For all Hypothesis\Decision Making Problems, please do the following: 1. Answer: Is the data discrete or continuous? 2. List the assumptions. 3. State the null and alternate hypothesis. 4 Write down the proper test statistic, Show all calculations, i.e. impute the numbers. . Set up Decision rules. Show the critical value. Reject or Fail to reject. 5. State your conclusions. 6.3.1 Suppose it...

A) Hypothesis Testing - Type I and Type II errors: You test the claim that the...

A) Hypothesis Testing - Type I and Type II errors: You test the claim that the mean gas mileage of all cars of a certain make is less than 29 miles per gallon (mpg). You perform this test at the 0.10 significance level. What is the probability of a Type I error for this test? B)Sleep: Assume the general population gets an average of 7 hours of sleep per night. You randomly select 40 college students and survey them on...

For Hypothesis testing and Decision making problems, please do the following: 1. State the null and...

For Hypothesis testing and Decision making problems, please do the following: 1. State the null and alternate hypothesis. 2. Write down the proper test statistic. 3. Show all calculations. 4. Show the critical value. 5. State your conclusions. 2. Some people seem to believe that you can fix anything with duct tape. Even so, many were skeptical when researchers announced that duct tape may be a more effective and less painful alternative to the more traditional technique of using liquid...

Which of the following is not a valid method for making a decision about a hypothesis...

Which of the following is not a valid method for making a decision about a hypothesis test? A. Compare the test statistic Z0 to the critical region B. Compare μ to an appropriate OC curve C. Compare μ0 to a confidence interval D. Compare P-value to α

discuss about different methods of decision making with hypothesis testing (p value, critical value and confidence...

discuss about different methods of decision making with hypothesis testing (p value, critical value and confidence interval) and which one you prefer to use on discussion board

Which one of the following statements is correct about hypothesis testing?

The topic for this week is Inferential Statistics including Hypothesis Testing. This statistical methodology is used...

The topic for this week is Inferential Statistics including Hypothesis Testing. This statistical methodology is used to test for a statistically significant difference. Compare the mortality rate between two different countries of interest or between the Worldwide rate and any one country of interest. You will perform a Two Sample Hypothesis Test of Proportions to compare the data. Be sure to conduct a complete five step Hypothesis Test. You may want to review the example problems posted in this week’s discussion stream. State the conclusions...

1.The main role of Management Accounting is: i)Planning ii)Control and iii)Decision making. Decision making is the...

1.The main role of Management Accounting is: i)Planning ii)Control and iii)Decision making. Decision making is the selection of the correct cost element and take the right decision in the best interest of the organization be: -Make or buy decision -Accept or reject decision -Shut down decision -Limiting factor decision In relation to Decision making explain the above statement. Your assignment, should include limiting factor with several constraint and making use of linear programing technique). 50marks

Question