Please SHOW ALL WORK!!! ONLY TYPED ANSWERS NO WRITTEN!! atis the Type lHerror in

Question

Please SHOW ALL WORK!!! ONLY TYPED ANSWERS NO WRITTEN!!

atis the Type lHerror in this situation? What are the consequences of making this error? 7. Carpetland salespersons average $8.000 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. b. What is the Type I error in this situation? What are the consequences of making this error? e Type II error in this situation? What are the consequences of making this error?

Explanation / Answer

a)

H0 : compensation plan does not increase the average sales per salesperson
H1 : compensation plan increases the average sales per salesperson

b)

Type 1 error is : when we reject the null hypothesis , when we should not

so this means that we conclude compensation plan increases the average sales per salesperson when infact compensation plan does not increase the average sales per salesperson is true

c)

Type 2 error is : when we accept the null hypothesis , when we should not

so this means that we conclude that compensation plan does not increase the average sales per salesperson when infact compensation plan does increase the average sales per salesperson is true

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