Module Eight Honors Activity Name JAZMYN DAVIS

Question 1
A parachutist has made thousands of successful jumps. His assumption is that when he pulls the
ripcord, the parachute will open.

a) What are the null and alternative hypothesis?

Null – parachute will open.

Alternative – Parachute will not open.

b) Describe a Type I error in context along with the consequence.

A type I error is assuming the parachute will not open, when in fact it will open.

c) Describe a Type II error in context along with the consequence.

The parachutist assumes the parachute will open, but it in fact will NOT.

d) Which is a more serious error in this context? Justify your answer.

Type II Error will be a more serious error because if the parachute does not open, then the
parachutists could essentially fall to their death. Whereas with a type I error, there is a
mild anxiety at start of the fall, but the parachute will help to manifest a safe landing.

e) Most parachutes have a backup in case the rip cord malfunctions.

Does this guard against Type I or Type II errors? Explain.

This guards against Type II error because a type II error assumes a parachute rip cord
malfunction, causing it to not open.

f) Suppose you went skydiving and pull the rip cord and it does not function.
You have time to pull it again or pull the back-up but not both.
What would you do?

I would rather pull the backup because the original has not proven to work so far, and in
this case, your life depends on making the right choice. For this reason, I would go with
the option which has not yet proven to be a disappointment—which shows to be the back-
up rather than the original which malfunctioned in the first place.
Question 2
In 2007 the US Census Bureau reported that 71.3% of American families owned their homes. The city
council is debating on whether to offer tax breaks to first time homebuyers, but they only want to
do so if there is strong evidence that the rate of home ownership has increased since 2007 since it
will cost the city money to do so.

a) What are the null and alternative hypothesis?

Possible null and alternative hypothesis would be an increasing, decreasing, or

constant rate of home ownership.

b) Describe a Type I error in context along with the consequence.

An example of a Type I error would be assuming a decrease in home ownership when it

actually increases. This could cause misuse of tax revenue, causing the program to no
longer proceed.

c) Describe a Type II error in context along with the consequence.

An example of a Type II error could be that if you think homeownership increases when it
actually decreases. This can cause a loss of tax revenue and the repeated loss of tax
money.

d) Which is a more serious error in this context? Justify your answer

Type I would be more serious because you are continually losing money you could have
been gaining, the other alternative would be decreasing homeownership which could be
improved…. but for type Il you cannot get your money back.

e) For each type of error, tell who would be harmed.

For the type I error citizens of the city would be most harmed and for type Il error the
city would be harmed.