A 2011 survey by the Bureau of Labor Statistics reported that 91% of Americans have paid leave. In January 2012, a random survey of 1,000 workers showed that 89% had paid leave.The resulting p-value is 0.0271; thus, the null hypothesis is rejected. It is concluded that there has been a decrease in the proportion of people who have paid leave from 2011 to January 2012.What type of error is possible in this situation? Type I Type II Neither Both
Question
A 2011 survey by the Bureau of Labor Statistics reported that 91% of Americans have paid leave. In January 2012, a random survey of 1,000 workers showed that 89% had paid leave.The resulting p-value is 0.0271; thus, the null hypothesis is rejected. It is concluded that there has been a decrease in the proportion of people who have paid leave from 2011 to January 2012.What type of error is possible in this situation? Type I Type II Neither Both
Solution
In this situation, a Type I error is possible. A Type I error occurs when the null hypothesis is true, but is rejected. It is saying something has changed when in fact it hasn't. In this case, the null hypothesis that there is no change in the proportion of people who have paid leave is rejected. However, there is a chance that this is a Type I error, meaning that in reality, there might not have been a decrease in the proportion of people who have paid leave from 2011 to January 2012.
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