Problem

According to a report, the standard deviation of monthly cell phone bills was $\$ 4.85$ in 2017 . A researcher suspects that the standard deviation of monthly cell phone bills is different today. What would it mean to make a Type I error? A. The sample evidence did not lead the researcher to believe the standard deviation of monthly cell phone bills is different from $\$ 4.85$ when, in fact, the standard deviation of bills is different from $\$ 4.85$. B. The sample evidence did not lead the researcher to believe the standard deviation of monthly cell phone bills is higher than $\$ 4.85$ when, in fact, the standard deviation of bills is higher than $\$ 4.85$. C. The sample evidence led the researcher to believe the standard deviation of monthly cell phone bills is higher than $\$ 4.85$ when, in fact, the standard deviation of bills is $\$ 4.85$. D. The sample evidence led the researcher to believe the standard deviation of monthly cell phone bills is different from $\$ 4.85$ when, in fact, the standard deviation of bills is $\$ 4.85$.

Solution

Step 1 :A Type I error, also known as a false positive, occurs when we reject a true null hypothesis. In this context, the null hypothesis is that the standard deviation of monthly cell phone bills is still $4.85.

Step 2 :Therefore, a Type I error would occur if the researcher concludes that the standard deviation is different from $4.85 when it is actually still $4.85.

Step 3 :\(\boxed{\text{D. The sample evidence led the researcher to believe the standard deviation of monthly cell phone bills is different from \$4.85 when, in fact, the standard deviation of bills is \$4.85.}}\)

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Source: https://solvelyapp.com/problems/20002/

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