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: The consequences of committing a Type I 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:  The consequences of committing a Type I 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

Committing a Type I error means rejecting a true null hypothesis. In this context, it would mean accepting the hypothesis that the site is acceptable when it is actually not (i.e. there are less than 300 automobiles passing per hour). Therefore, the consequence of committing a Type I error would be that the franchiser builds on an unacceptable site, which is B.

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