## Related questions with answers

In 2012, the Gallup Poll reported that only $62 \%$ of American families owned their homes, the lowest percentage reported in a decade. Census data show that the ownership rate in one small city is even lower. The city council is debating a plan to offer tax breaks to first-time home buyers in order to boost people to become homeowners. They choose to adopt the plan on a 2-year trial basis and use the data they collect to make a decision about continuing the tax breaks. Since this plan costs the city tax revenues, they will continue to use it only if there is strong evidence that the rate of home ownership is increasing.

c) What would a Type II error be?

Solution

VerifiedIn this exercise, we need to discuss what **Type II error** would be. Let's firstly revise the types of error:

When rejecting a null hypothesis that is, in fact, correct, a **Type I error** might arise.

A **Type II error** occurs when a null hypothesis is not rejected despite the fact that it is wrong.

## Create an account to view solutions

## Create an account to view solutions

## Recommended textbook solutions

#### Business Statistics: Communicating with Numbers

2nd Edition•ISBN: 9780078020551Alison Kelly, Sanjiv Jaggia#### Basic Business Statistics: Concepts and Applications

12th Edition•ISBN: 9780132168380 (15 more)David M. Levine, Mark L. Berenson, Timothy C. Krehbiel#### Basic Business Statistics: Concepts and Applications

13th Edition•ISBN: 9780321870025 (2 more)David M. Levine, Kathryn A. Szabat, Mark L. Berenson#### Business Statistics

3rd Edition•ISBN: 9780321925831 (3 more)Norean D. Sharpe, Paul Velleman, Richard D. De Veaux## More related questions

1/4

1/7