Reference no: EM132849329
To investigate an alleged unfair trade practice, the Federal Trade Commission (FTC) takes a random sample of 25 "5-ounce" candy bars from a large shipment. The mean of the sample weights is 4.85 ounces and the sample standard deviation is 0.3 ounce. If the FTC concludes that the labels overstate the weight of candy, they will take punitive action against the company producing the candy bars. The unknown (but true) mean of the shipment is denoted by m.
In this example, the correct formulation of the hypotheses is (pick one): _____
a. H0: m ³ 5 and Ha: m < 5
b. H0: m < 5 and Ha: m ³ 5
c. H0: m = 5 and Ha: m ¹ 5
d. H0: m ¹ 4.85 and Ha: m = 4.85
e. H0: m ³ 4.85 and Ha: m < 4.85
On the basis of these results, the FTC should (pick one) _____
a. Take steps to punish the candy company
b. Not take steps to punish the candy company
In the context of this example, a Type II error is? why?
a. Concluding that the weight of candy bars is smaller than 5 ounces, when in reality it is not.
b. Concluding that the weight of candy bars is at least 5 ounces, when in reality it is smaller than 5 ounces.
c. Concluding that the weight of candy bars is smaller than 5 ounces, when in reality it is smaller.
d. Concluding that the weight of candy bars is at least 5 ounces, when in reality it is larger than 5 ounces.