For Exercises 23–35, do the following:

  1. Provide the null and alternative hypotheses.
  2. Describe the two ways a correct decision could be made in the context of the problem.
  3. Describe what a Type I error would mean in the context of the problem.
  4. Describe what a Type II error would mean in the context of the problem.

Question 9.27

27. Price of Milk. The U.S. Department of Agriculture is examining whether the mean price for a gallon of milk has increased since January 2011, when it was $3.34.

9.1.27

(a) (b) Conclude that the mean is greater than $3.24 when it actually is greater than $3.24, and conclude that the mean is equal to $3.24 when it actually is equal to $3.24. (c) Concluding that the mean is greater than $3.24 when it actually is equal to $3.24 (d) Concluding that the mean is equal to $3.24 when it actually is greater than $3.24