What is the type one error in efficiency measures

Reference no: EM13156893

The average gasoline price of one of the major oil companies has been $1.25 per gallon. Recently, the company has undertaken several efficiency measures in order to reduce prices. Management is interested in determining whether their efficiency measures have actually reduced prices. Answer the following questions for a hypothesis test that could be used to test the claim of management.

a. Develop the appropriate null and alternative hypotheses.
b. What is the Type I error in this situation?
c. What is the Type II error in this situation?

Reference no: EM13156893

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