Use the following scenario for problems 10 through 16. (This scenario is fictiti
ID: 2929549 • Letter: U
Question
Use the following scenario for problems 10 through 16. (This scenario is fictitious) Tuition is on the increase at nearly every university in the nation and is projected to increase by as much as 50% over the next 3 years at some institutions. At the University of Wyoming the Trustees have decided that UW students are in favor of a large one time tuition increase (20%) rather than a small annual tuition increase (5% per year) over the next 3 years. They plan to implement this one time 20% tuition increase this year, unless it can be demonstrated that students would prefer a small annual tuition increase of 5% each year instead.
In the context of this scenario, answer the following.
10. What is the null hypothesis?
11. What is the alternative hypothesis?
12. What is the Type I error?
13. What is the Type II error?
14. What does "significant" mean?
15. What is the critical value (CV)?
16. What is the test statistic (TS)?
Explanation / Answer
10. Null Hypothesis : Students are in favor of a large one time tuition increase (20%).
11. Alternative hypothesis : Students are NOT in favor of a large one time tuition increase they would rather prefer a small annual tuition increase (5% per year) over the next 3 years.
12. Type 1 error : The Trustees have decided that UW students are in favor of small annual tuition increase (5% per year) over the next 3 years.when students are in favor of a large one time tuition increase (20%) i.e Rejection of null hypothesis when it was true.
13. Type 2 error : The Trustees have decided that UW students are in favor of a large one time tuition increase (20%) when the students students would prefer a small annual tuition increase of 5% each year instead i.e Acceptance of null hypothesis when it was false.