After test-marketing a new product, a restaurant chain concluded that introduction of the product nationwide would increase its sales by more then 11%. This conclusion was based on recording sales information for a random sample of its restaurants selected for the marketing trial. With μ denoting the mean percentage increase in sales for all its restaurants, consider using the sample data to data to decide between H ₀ : μ = 11 and H _a : μ > 11.

(a) Is the restaurant chain's conclusion consistent with a decision to reject Ho or to fail to reject Ho?

• Reject H ₀
• Fail to reject H ₀

(b) If the restaurant is Incorrect in Its conclusion, Is the company making a Type I or a Type II error?

• Type I error
• Type II error

Answer rating: 100% (QA)

a Reject H 0 as the decision is in fa... View the full answer