Correct question is;
You represent a chemical company that is being sued for paint damage to automobiles. You want to support the claim that the mean repair cost per automobile is more than $650. How would you write the null and alternative hypotheses?
A) State the null and alternative hypotheses in words (context of the problem)
B) Write the null and alternative hypotheses in appropriate symbols (population parameters μ, σ or p)
C) Describe in words Type I error (the consequence of rejecting a true null hypothesis.)
D) Describe in words Type II error (the consequence of failing to reject a false null hypothesis.)
Answer:
A)In words;
Null hypothesis is that the cost is $650
Alternative hypothesis is that the cost is not $650
B) Null hypothesis; μ = 650
Alternative hypothesis; μ ≠ 650
C) Type I Error will be to make a claim that the repair cost is not $650, when it is actually $650.
D) Type II Error will be to make a claim that the repair cost is not $650, but fail to reject the claim that it is $650.
Step-by-step explanation:
We are told that You want to support the claim that the mean repair cost per automobile is more than $650.
Thus;
A)In words;
Null hypothesis is that the cost is $650
Alternative hypothesis is that the cost is not $650
B) Null hypothesis; μ = 650
Alternative hypothesis; μ ≠ 650
C) Type I Error will be to make a claim that the repair cost is not $650, when it is actually $650.
D) Type II Error will be to make a claim that the repair cost is not $650, but fail to reject the claim that it is $650.
