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Naily [24]
2 years ago
8

An insurance company sets up a statistical test with a null hypothesis that the average time for processing a claim is 7 days, a

nd an alternative hypothesis that the average time for processing a claim is greater than 7 days.
After completing the statistical test, it is concluded that the average time exceeds 7 days.

However, it is eventually learned that the mean process time is really 9 days.

What type of error occurred in the statistical test?
Mathematics
1 answer:
JulsSmile [24]2 years ago
4 0

Answer:

There was no error

Step-by-step explanation:

There are two types of statistical errors, the type 1 error and the type 2 error. In this case we refute the null hypothesis when the hypothesis is, in fact, false, because the mean process is 9 days instead of 7. Therefore we made no errors.

If the null hypothesis were True, a type 1 error would have ocurred. If the null hypothesis were false and we didnt refute it, then a type 2 error would have ocurred.

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Answer:

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Step-by-step explanation:

Step one:

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Required:

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Step two:

the expression for the compound interest is

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