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Basic Question 2 of 13
A consumer group wants to prove that the average hospital costs are more than $931 per day. If the decision is to fail to reject H0: μ < 931, the conclusion should be that ______.
B. the average daily cost of the hospital is less than $931.
C. there is no evidence that the average daily cost of the hospital is more than $931.
A. there is no evidence that μ < 931.
B. the average daily cost of the hospital is less than $931.
C. there is no evidence that the average daily cost of the hospital is more than $931.
User Contributed Comments 5
| User | Comment |
|---|---|
| ambar | See the difference between Q1, 2 and 3 |
| johntan1979 | Type II error... no conclusive evidence. |
| johntan1979 | Also, failing to reject null is not the same as accepting null. |
| lndcobra | In the question H_0 is μ < 931, and they fail to reject it, so C is also incorrect, as it could mean that hospital costs equal to 931 (μ = 931) |
| wpaxtonn21 | @johntan1979 this is not a type II error. |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain hypothesis testing and its components, including statistical significance, Type I and Type II errors, and the power of a test
CFA® 2024 Level I Curriculum, Volume 1, Module 8.