Question

Duke Energy reported that the cost of electricity for an efficient home in a particular neighborhood of Cincinnati, Ohio was $107 per month. A researcher believes that the cost of electricity for a comparable neighborhood in Chicago, Illinois is higher. A sample of homes in this Chicago neighborhood will be taken and the sample mean monthly cost of electricity will be used to test the following null and alternative hypotheses. H0: μ ≤ 107 Ha: μ > 107 a. Assume the sample data lead to rejection of the null hypothesis. What would be your conclusion about the cost of electricity in the Chicago neighborhood? b. What is the Type I error in this situation? The Type I error is H0 when it is . What are the consequences of making this error? c. What is the Type II error in this situation? The Type II error is H0 when it is . What are the consequences of making this error

Answer 1

Hoi u <107 Haill> 107 Given to is selected we concluded that there is enough evidence that mean electricity cost of neighbou hered is more than 107. Tube lesor= (Reject Hol Ho is true) we concluded that mean electricity cost is more than 107 when it is actually not more than lo7. wissequences out the folgee, iterugreedteppileg Type a essor =failed to reject Hol How pales - we concluded that mean electricity cost is not more than 107 when it is actually more than 107. Corosequartaffelse udose, it sounds so groot