According to the National Beer Wholesalers Association, U.S. consumers 21 years and older consumed 26.9 gallons of beer and cide
r per person during 2017. A distributor in Milwaukee believes that beer and cider consumption are higher in that city. A sample of consumers 21 years and older in Milwaukee will be taken, and the sample mean 2017 beer and cider consumption will be used to test the following null and alternative hypotheses: H, :μ< 26.9
Ha : μ> 26.9
a. Assume the sample data led to rejection of the null hypothesis. What would be your conclusion about consumption of beer and cider in Milwaukee?b. What is the Type I error in this situation? What are the consequences of making this error?c. What is the Type II error in this situation? What are the consequences of making this error?
If the null is rejected, then we conclude that the average Consumption of beer and cider by customers who are 21 years and above is greater than 26.1
A type 1 error is committed if the null hypothesis is incorrectly rejected ; this means we will be concluding that customers who are 21 years and older have higher average Consumption when they actually do not. This may lead to a restriction on beer consumption in the city when there actually isn't a need for it.
For type 2 error, a false null is incorrectly accepted, in this scenario, we are saying that the consumption of beer and cider is not beyond the mean value when in actual sense it is.
