University Housing Costs Narrative
A large university claims that the average cost of housing within 3 kilometres of the campus is $6900 per school year. A high school student is preparing her budget for her freshman year at the university. She is concerned that the university's estimate is too low. Having taken statistics, she decides to perform the following test of hypothesis: , where
represents the average cost of housing per year within 3 kilometres of the university.
-Refer to University Housing Costs Narrative. Describe the Type I error for this .
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