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The Company claims that the average time for its customers to pay their bills is less than 2 weeks (i.e. alternative hypothesis (H1): average billing
The Company claims that the average time for its customers to pay their bills is less than 2 weeks (i.e. alternative hypothesis (H1): average billing period < 14 days). As we've learned in the week 9, there are two types of risks: alpha risk (Type 1 error) and beta risk (Type 2 error). Select the type of risk (and types of error) you can make in each situation. True average payment period is 12 days & You rejected the null hypothesis a. Alpha Risk (Type 1 error). b. No error c. Beta risk (Type 2 error)
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