Top management of a large multinational corporation wants to create a culture of innovativeness and change.A consultant hired to assess the company's organizational culture finds that only 15% of employees are open to new ideas and approaches toward their work.Consequently the company conducts a program for employees in order to reinforce the new corporate philosophy.After the program is completed, employees are surveyed to see if a greater percentage is now open to innovativeness and change.Suppose that based on the sample results the company rejects the null hypothesis when in fact it is true.Which of the following statements is correct?
A)This is known as a Type II error.
B)This is known as a fatal error.
C)This led to the conclusion that the percentage of employees open to new ideas did not increase when in fact it did.
D)This led to the conclusion that the percentage of employees open to new ideas did increase when in fact it did not.
E)This led to a P-value that was greater than the level of significance.

Question

Quizplus · Accepted Answer

Rejecting the null hypothesis when it is true is known as a Type I error, which leads to the incorrect conclusion that there has been a change or effect (in this case, an increase in the percentage of employees open to new ideas) when there has not been any.

Top Management of a Large Multinational Corporation Wants to Create