A fast-food franchise is considering building a restaurant at a busy intersection. A financial advisor determines that the site is acceptable only if, on average, more than 300 automobiles pass the location per hour. The advisor tests the following hypotheses: H₀: μ ≤ 300. H_A: μ 300. The consequences of committing a Type II error would be that ________. A) the franchiser builds on an acceptable site B) the franchiser builds on an unacceptable site C) the franchiser does not build on an acceptable site D) the franchiser does not build on an unacceptable site

Question

A fast-food franchise is considering building a restaurant at a busy intersection. A financial advisor determines that the site is acceptable only if, on average, more than 300 automobiles pass the location per hour. The advisor tests the following hypotheses: H₀: μ ≤ 300. H_A: μ > 300. The consequences of committing a Type II error would be that ________. A) the franchiser builds on an acceptable site B) the franchiser builds on an unacceptable site C) the franchiser does not build on an acceptable site D) the franchiser does not build on an unacceptable site

Quizplus · Accepted Answer

A Type II error occurs when the null hypothesis (μ ≤ 300) is not rejected, even though it is false (μ > 300). This means that the advisor would fail to identify the site as unacceptable, and the franchiser would potentially build on an unacceptable site. Therefore, the consequences of committing a Type II error would be that the franchiser does not build on an acceptable site.

A Fast-Food Franchise Is Considering Building a Restaurant at a Busy