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A marketing consulting group wants to see whether placing a seasonal cookie product on an end cap (the shelf at the end of an aisle at a store) will make a difference in sales. The average sales of the seasonal cookie for this region was 650 units. A sample of 36 stores that placed the cookie on an end cap showed a sample mean of 671 units sold with a standard deviation of 81. The resulting p-value is 0.1288; thus, the null hypothesis is not rejected. The marketing consulting group concludes that placing the cookies on an end cap does not affect sales.What type of error is possible in this situation?Group of answer choicesNeitherBothType IType II

Question

A marketing consulting group wants to see whether placing a seasonal cookie product on an end cap (the shelf at the end of an aisle at a store) will make a difference in sales. The average sales of the seasonal cookie for this region was 650 units. A sample of 36 stores that placed the cookie on an end cap showed a sample mean of 671 units sold with a standard deviation of 81. The resulting p-value is 0.1288; thus, the null hypothesis is not rejected. The marketing consulting group concludes that placing the cookies on an end cap does not affect sales.What type of error is possible in this situation?Group of answer choicesNeitherBothType IType II

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Solution 1

The type of error possible in this situation is a Type II error. This type of error occurs when the null hypothesis is not rejected when it is false. In this case, the marketing consulting group concluded that placing the cookies on an end cap does not affect sales, but there is a chance that this conclusion is incorrect and that placing the cookies on an end cap actually does affect sales.

Solution 2

In this situation, the possible error is a Type II error. This is because the marketing consulting group failed to reject the null hypothesis, which stated that placing the cookies on an end cap does not affect sales. However, there is a chance that this decision is incorrect and that placing the cookies on an end cap actually does affect sales. This is a Type II error, also known as a false negative.

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