Carpetland salespersons average $8,000 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: ÎĽ
Ha: ÎĽ
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 greater than $8,000 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 does not provide a population mean weekly sales not equal to $8,000 when in fact it does .