Question

Three years​ ago, the mean price of an existing​ single-family home was ​$243761. A real estate broker believes that existing home prices in her neighborhood are higher. ​(a) Determine the null and alternative hypotheses. ​(b) Explain what it would mean to make a Type I error. ​(c) Explain what it would mean to make a Type II error. ​(a) State the hypotheses.

Answer 1

Answer with Step-by-step explanation:

Since we have given that

Mean price of an existing single family home = $243761

So, the hypothesis:

$H_0:\mu=243761\\\\H_a:\mu>243761$

Type I error is a error in which null hypothesis is correct and actual but it gets rejected.

It means mean price is exactly $243761, but it is proved that mean price would be higher than $246761.

Type II error is a error in which null hypothesis is not correct but inspite of  that it gets accepted.

So, here, mean price is  higher than $243761 but it is proved by calculation that mean price is equal to $243761.