Question

A fast-food franchise is considering building a restaurant at a busy intersection. A financial advisor determines that the site is acceptable only if, on average, more than 300 automobiles pass the location per hour. The advisor tests the following hypotheses Ho H s 300. The consequences of committing a Type ll error would be that Multiple Choice the franchiser does not build on an unacceptable site the franchiser does not build on an acceptable site the franchiser builds on an unacceptable site the franchiser builds on an acceptable site

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Answer is : 2nd option : Type 2 error describes the error that occurs when one fails to reject a null hypothesis that is actually false

Therefore the consequences of committing type 2 error is : The franchiser does not build (because null is not rejected, Mu<=300, thus we will not build ) on an acceptable site ( this comes from the fact that Alternate was actually true)

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