Question

Carpetland salespersons average $7,000 per week in sales, Steve Contols, the firm's vice president, proposes a compensation plan with new selling incentives, Steve hopes that the results of a trial selling period will enable him to conchide that the compensation plan increases the average sales per salesperson (a) Develop the appropriate null and alternative hypotheses. How = 7,000 H 7,000 Hou 7,000 H u > 7.000 Ho 7.000 # 7.000 Mo: 27,000 H 7,000 Hou> 7.000 HHS 7,000 (b) What is the type 1 error in this situation? What are the consequences of making this error? It would be concluding HS 7,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales It would be concluding <7.000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales it would be concluding H 27,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help. It would be concluding > 7.000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help. (c) What is the type II error in this situation? What are the consequences of making this error? It would be concluding $7,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increases It would be concluding 7,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales It would be concluding 27,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help Type here to search hp

> Carpetland salespersons average $8,000 per week in sales. Steve Contois, the firm's vice president, proposes a compensation plan with new selling incentives. Steve hopes that the results of a trial selling period will enable him to conclude that the compensation plan increases the average sales per salesperson.

a. Develop the appropriate null and alternative hypotheses.
H 0:
less than or equal to $8,000

H a:
greater than $8,000


b. In this situation, a Type I error would occur if it was concluded that the new compensation plan
provides
a population mean weekly sales
greater than $8,000
when in fact it
does not
.

c. In this situation, a Type II error would occur if it was concluded that the new compensation plan
does not provide
a population mean weekly sales
greater than $8,000
when in fact it
does
.

Answer 1

in Golds' Solution Corfalland (sale pulsomis average $4.000 per week Rezuired information is gilon by Do li tooo Calulaki- @ Slate the appropriate call and alternative hypothesis', We have to obtained the appropriate null and atternative hypothesis is ->tere, talut hypothesis is, toiles toool - Alternative hypothesils is Het: et >7000] Therefore, - option its correct answer. Owhat is the type I Error in this situation i given Error situation is, Wer have to oblained the stere, would be conducting (ees 7000 when ccals. This mistakes could resunt in the plan does not increase implementing the plan it would it would not be us when Therefore, optiom Correct .

| © what is the type II Error im S tale have to obtained the given this situation z Error is situation is Eleie > Coolid be conducting Cles food when the plan doel increase Sales. This miltake Could ressant in not implementing inplam that would N increase Gales. There for option D is corect answery.