(a) Determine the null and alternativehypotheses, (b) explain what it would mean to make a type Ierror, and(c) explain what it would mean to make a type II error.

Three yearsago, the mean price of asingle-family home was $243,719. A real estate broker believes that the mean price has increased since then.

(a) Which of the following is the hypothesis test to beconducted?

A.

H0: =$243,719; H1: <$243,719

B.

H0: =$243,719; H1: $243,719

C.

H0: =$243,719; H1: >$243,719

(b) Which of the following is a type Ierror?

A.

The broker fails to reject the hypothesis that the mean price is $243,719, when the true mean price is greater than $243,719.

B.

The broker rejects the hypothesis that the mean price is $243,719, when it is the true mean cost.

C.

The broker rejects the hypothesis that the mean price is $243,719, when the true mean price is greater than $243,719.

(c) Which of the following is a type IIerror?

A.

The broker fails to reject the hypothesis that the mean price is $243,719, when it is the true mean cost.

B.

The broker fails to reject the hypothesis that the mean price is $243,719, when the true mean price is greater than $243,719.

C.

The broker rejects the hypothesis that the mean price is $243,719, when it is the true mean cost.