A company will market a new hybrid luxury car only if they can sell it for more than $50, 000 (otherwise it will lose money). They do a random survey of 50 potential customers and run a hypothesis test with Ho:$mu$=50, 000 and Ha:$mu$>50, 000. What would be the consequences of Type I and Type II errors?

TESTS OF SIGNIFICANCE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A company will market a new hybrid luxury car only if they can sell it for more than $50, 000 (otherwise it will lose money). They do a random survey of 50 potential customers and run a hypothesis test with Ho:

A	Type I:produce a nonprofitable car; Type II:fail to produce a profitable car
B	Type I:fail to produce a profitable car; Type II:fail to produce a nonprofitable car
C	Type I:fail to produce a nonprofitable car; Type II:produce a profitable car
D	Type I:fail to produce a profitable car; Type II:produce a profitable car
E	Type I:produce a nonprofitable car; Type II:fail to produce a nonprofitable car

Explanation:

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RESEARCH METHODOLOGY

STATISTICAL TECHNIQUES AND TOOLS

TESTS OF SIGNIFICANCE