Challenging a Company’s Claim: Tests of Hypotheses

Use the Internet or a newspaper or magazine to find an example of a claim made by a company about the reliability or efficiency of one of its products. In this activity, you represent a consumer group that believes the claim may be false. 

1. In your example, what kinds of evidence might exist that would cause one to suspect that the claim might be false and therefore worthy of a statistical study? Be specific. If the claim were false, how would consumers be hurt? 

2. Describe what data are relevant and how those data may be collected. 

3. Explain the steps necessary to reject the company’s claim at level x. State the null and alternative hypotheses. If you reject the claim, does it mean that the claim is false? 

4. If you reject the claim when the claim is actually true, what type of error has occurred? What is the probability of this error occurring? 

5. If you were to file a lawsuit against the company based on your rejection of its claim, how might the company use your results to defend itself?

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