Travelocity would like to test if the average roundtrip airfare between New York and London is less than $1,400. A Type I error would occur if Travelocity concludes that the average airfare is __________________________________________.
A)$1,400 or more when, in reality, the average airfare is less than $1,400
B)less than $1,400 when, in reality, the average airfare is $1,400 or more
C)not equal to $1,400 when, in reality, the average airfare is equal to $1,400
D)equal to $1,400 when, in reality, the average airfare is not equal $1,400 or more

Question

Quizplus · Accepted Answer

A Type I error occurs when the null hypothesis is incorrectly rejected. In this context, it means concluding the average airfare is less than $1,400 when it is actually $1,400 or more.

Travelocity Would Like to Test If the Average Roundtrip Airfare