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An Insurance Company Sets Up a Statistical Test with a Null

Question 125

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An insurance company sets up a statistical test with a null hypothesis that the average time for processing a claim is 7 days, and an alternative hypothesis that the average time for processing a claim is greater than 7 days. After completing the statistical test, it is concluded that the average time exceeds 7 days. However, it is eventually learned that the mean process time is really 7 days.
What type of error occurred in the statistical test?


A) No error occurred in the statistical sense.
B) Type II error
C) Type I error
D) Type III error

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