A large university claims that the average cost of housing within three miles 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 AP Statistics, she decides to perform the following test of hypothesis: H₀: = 6900 versus H_a: > 6900, where represents the average cost of housing per year within three miles of the university.
Describe the Type I error for this problem.
________________________________________________________
Describe the Type II error for this problem.
________________________________________________________
Which error has more serious consequences for the student?
________________________________________________________

Question

A large university claims that the average cost of housing within three miles 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 AP Statistics, she decides to perform the following test of hypothesis: H₀:

= 6900 versus H_a:

> 6900, where

represents the average cost of housing per year within three miles of the university.
Describe the Type I error for this problem.
________________________________________________________
Describe the Type II error for this problem.
________________________________________________________
Which error has more serious consequences for the student?
________________________________________________________

Quizplus · Accepted Answer

The Answer of A large university claims that the average cost of housing within three miles 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 AP Statistics, she decides to perform the following test of hypothesis: H₀: = 6900 versus H_a: > 6900, where represents the average cost of housing per year within three miles of the university. Describe the Type I error for this problem. ________________________________________________________ Describe the Type II error for this problem. ________________________________________________________ Which error has more serious consequences for the student? ________________________________________________________

A Large University Claims That the Average Cost of Housing