A auto manufacturer claims that one of its car brands has mean MPG (miles per gallon) rating of 40 on the highway. Identify Type I error for this claim.

a. Fail to reject the claim that mean is 40 MPG when it is actually 40 MPG.
b. Fail to reject the claim that mean is 40 MPG when it is actually not 40 MPG.
c. Reject the claim that mean is 40 MPG when it is actually not 40 MPG.
d. Reject the claim that mean is 40 MPG when it is actually 40 MPG.

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Answer:

d. Reject the claim that mean is 40 MPG when it is actually 40 MPG.

Step-by-step explanation:

The type 1 error could be said to have been made if the null hypothesis is erroneously rejected.

In the scenario above :

The null hypothesis (H0) : mean = 40

Hence, if the Null hypothesis defined above is rejected when in fact the hypothesis that the mean miles per gallon is actually 40.

On the other hand, the type 2 error occurs when a null which is false is not rejected.

Hence, when a true null is rejected, a type 1 error is committed. Similarly, when a false null isn't rejected, then a type 2 error has been committed.

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