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A popular energy drink company, Zoom Beverages, is conducting research to evaluate the effectiveness of its new advertising campaign to increase the sales of its new energy drink. The null hypothesis in this study states that the new advertising campaign has no significant impact on sales of the new energy drink. The marketing team collects data on sales figures from various regions and retail outlets over a two-month period. Once data collection concluded, it was analysed. The results indicate a significant increase in energy drink sales because of the new advertising campaign. The research team concludes that the new advertising campaign is effective in increasing their new energy drink sales, and the null hypothesis is rejected. However, a few months after the release of the energy drink, reports start to surface suggesting that the advertising campaign had no significant influence on energy drink sales. The initial conclusion drawn from the research turns out to be incorrect. Based on the scenario presented above, what is the statistical term for the situation where the null hypothesis is rejected when it is, in fact, true?Group of answer choicesType II errorFalse positiveType I errorTrue negative

Question

A popular energy drink company, Zoom Beverages, is conducting research to evaluate the effectiveness of its new advertising campaign to increase the sales of its new energy drink. The null hypothesis in this study states that the new advertising campaign has no significant impact on sales of the new energy drink. The marketing team collects data on sales figures from various regions and retail outlets over a two-month period. Once data collection concluded, it was analysed. The results indicate a significant increase in energy drink sales because of the new advertising campaign. The research team concludes that the new advertising campaign is effective in increasing their new energy drink sales, and the null hypothesis is rejected. However, a few months after the release of the energy drink, reports start to surface suggesting that the advertising campaign had no significant influence on energy drink sales. The initial conclusion drawn from the research turns out to be incorrect. Based on the scenario presented above, what is the statistical term for the situation where the null hypothesis is rejected when it is, in fact, true?Group of answer choicesType II errorFalse positiveType I errorTrue negative

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Solution

The statistical term for the situation where the null hypothesis is rejected when it is, in fact, true is a Type I error.

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