Carpetland salespersons average per week in sales. Steve Contois, the firm'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.
:
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:
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b. What is the Type I error in this situation?

In this situation, a Type I error would occur if it was concluded that the new compensation plan provides a population mean weekly sales
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when in fact it does not.

What are the consequences of making this error?


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c. What is the Type II error in this situation?

In this situation, a Type II error would occur if it was concluded that the new compensation plan provides a population mean weekly sales
- Select your answer -
when in fact it does not.

What are the consequences of making this error?


- Select your answer -