Carpetland salespersons average $8000 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.
H0: μ:
Ha: μ:
b. In this situation, a Type I error would occur if it was concluded that the new compensation plan provides a population mean weekly sales when in fact it does not.
c. In this situation, a Type II error would occur if it was concluded that the new compensation plan provides a population mean weekly sales when in fact it does not.
