3.3

Carpetland salespersons average $8,000 per week in sales. Steve Contois, the rm's vice president, proposes a compensation plan with new selling incentives. Steve hopes that the results of a trial selling period will enable him to conclude that the compensation plan increases the average sales per salesperson. (a) Develop the appropriate null and alternative hypotheses. O H": u g 8,000 Ha: p > 8,000 O H0: ,1 8,000 Ha: u g 8,000 O HO: u 2 8,000 Ha: u 8,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help. (c) What is the type 11 error in this situation? What are the consequences of making this error? O It would be concluding [.1 S 8,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales. O It would be concluding [.1 8,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help