Carpetland salespersons average $8000 per week in sales. Steve Contois, the firm

Question

Carpetland salespersons average $8000 per week in sales. Steve Contois, the firm's vice president, proposes a compensation plan with new selling incentives. Steve hopes that the results of a trial selling period will enable him to conclude that the compensation plan increases the average sales per salesperson.

a. Develop the appropriate null and alternative hypotheses.

Ha: Greater than 8000 (correct)

b. In this situation, a Type I error would occur if it was concluded that the new compensation plan provides a population mean weekly sales greaterthan 8000 (correct) when in fact it does not.

I need help with A and C, The answers I chose were wrong.

equal to 8000 SW greater than or equal to 8000 greater than 8000 ess than or equal to 8000 less than 8000 equal to 8000 not equal to 8000

Explanation / Answer

Part (a) Since the VP hopes that the results of a trial selling period will enable him to conclude that the compensation plan increases the average sales per salesperson.and the current average sales is already 8000, the null hypothesis should be average sales = 8000 and alternative should be average sales > 8000.

Part (b) - Answer given is correct.

Part (c) Type II error occurs when null hypothesis is accepted when in fact alternative is true. So, in the given situation, Type II error would occur if it were concluded that the average sales is equal to 8000 when it is really greater than 8000.

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