Portfolio selection problems should acknowledge both risk and ...

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Portfolio selection problems should acknowledge both risk and return.
  Indicate whether the statement is true or false

Question 2

A researcher is testing a new painkiller that claims to relieve pain in less than 15 minutes, on average.
 a. State the hypotheses associated with the researcher's test.
  b. Describe a Type I error for this situation.
  c. Describe a Type II error for this situation.

[tennis14576]

Answer to Question 1

T

Answer to Question 2

a. H0:   15
Ha:  < 15
b. A Type I error for this situation would be to incorrectly conclude that the average pain relief time is less than 15 minutes.
c. A Type II error for this situation would be to fail to conclude that the average relief time is less than 15 minutes when the average relief time actually is less than 15 minutes.