CAN 22 S2 Type 1 and Type 2 Errors

pdf

School

St. John's University *

*We aren’t endorsed by this school

Course

1013

Subject

Economics

Date

Apr 3, 2024

Type

pdf

Pages

2

Uploaded by ChancellorMoonVulture41

Report
Name: CAN 21: Type 1 and Type 2 Errors Should Rockford switch to bottled water? 1. State appropriate hypotheses for performing a significance test. Use a = 0.05 . 2. (a) After conducting a significance test, a P -value of 0.025 is found. Interpret this value. (b) Reject H 0 or fail to reject H 0 ? Keep the current water or switch to bottled water? Explain. (c) Let’s suppose this decision is wrong. What would be a consequence of this error? (d) If the water is safe, what is the probability that this error will occur? 3. (a) Now suppose the P-value was 0.217. Reject H 0 or fail to reject H 0 ? Keep the current water or switch to bottled water? Explain. (b) Let’s suppose this decision is wrong. What would be a consequence of this error? 4. Are the consequences in question #2 or question #3 more serious? Explain. The Wolverine Worldwide (a shoe company in Rockford) improperly disposed of chemicals (PFAS), which have leaked into the ground water. The state of Michigan says that if more than 7% of households in a city exceed the safe limit, the city needs to switch to bottled water. A concerned citizen takes a random sample of 100 households and finds that 12 have unsafe water. Do the data provide convincing evidence that Rockford should switch to bottled water?
Type I and Type II Errors Check Your Understanding Mr. Wilcox purchased a trick coin that is supposed to land heads up 75% of the time. One of his students volunteer to test this claim. The student flips the coin 50 times and finds that the coin lands heads up 35 times. The student then performs a test of the following hypotheses at the α = 0.10 significance level: 𝐻 0 : 𝑝 = 0.75 𝐻 𝑎 : 𝑝 < 0.75 where p = the true proportion of tosses of this coin that would land heads-up. 1. Describe a Type I error and a Type II error in this setting. 2. Which type of error may result in Mr. Wilcox returning the coin and writing a negative review of the product? 3. If the student were to use α = 0.05 instead of α = 0.10, would this make it more or less likely to reject the null hypothesis when the null hypothesis is true? Explain. Important ideas:
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help

Related Documents

Fin 178 Maxed Practice Problems.xlsx
HIMT365_MidtermExamLessons1-7_Tucker.docx
categorical_HW.pdf
Econ Individual Assignment solutn 10.pdf
Individual solution - 8.pdf
BADM 685_Assignment 5.docx
Quiz 3.2_ Flowcharts 5.pdf
TPS6.pdf
Quiz 3.2_ Flowcharts quiz 4.pdf
POS_486_Midterm_Review.docx
His-200 Module One Short Response.docx
Quiz 11.docx
Recommended textbooks for you
Text book image
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Text book image
Microeconomic Theory
Economics
ISBN:9781337517942
Author:NICHOLSON
Publisher:Cengage
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
MACROECONOMICS FOR TODAY
Economics
ISBN:9781337613057
Author:Tucker
Publisher:CENGAGE L
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning
SEE MORE TEXTBOOKS
Recommended textbooks for you
Text book image
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Text book image
Microeconomic Theory
Economics
ISBN:9781337517942
Author:NICHOLSON
Publisher:Cengage
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
MACROECONOMICS FOR TODAY
Economics
ISBN:9781337613057
Author:Tucker
Publisher:CENGAGE L
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning
SEE MORE TEXTBOOKS