2. Fowle Marketing Research, Inc., bases charges to a client on the assumption that telephone surveys can be completed in a mean time of 15 minutes or less. If a longer mean survey time is necessary, a premium rate is charged. A sample of 35 surveys provided the survey times shown in the file named Fowle. Based upon past studies, the population standard deviation is assumed known with o = 4 minutes. Is the premium rate justified? (a). Formulate the null and alternative hypotheses for this application. (b). At a = 0.01, what is your conclusion? (c). What is your interpretation of the type II error for this problem? What is its impact on the firm?

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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2. Fowle Marketing Research, Inc., bases charges to a client on the assumption that
telephone surveys can be completed in a mean time of 15 minutes or less. If a longer
mean survey time is necessary, a premium rate is charged. A sample of 35 surveys
provided the survey times shown in the file named Fowle. Based upon past studies,
the population standard deviation is assumed known with o =
4 minutes. Is the
premium rate justified?
(a). Formulate the null and alternative hypotheses for this application.
(b). At a =
0.01, what is your conclusion?
(c). What is your interpretation of the type II error for this problem? What is its
impact on the firm?
(d). Given a =
0.01, if the firm want to control the probability of making a type
II error to be less than 0.05 when the actual mean time is more than 17 minutes,
how large the sample size is needed?
Transcribed Image Text:2. Fowle Marketing Research, Inc., bases charges to a client on the assumption that telephone surveys can be completed in a mean time of 15 minutes or less. If a longer mean survey time is necessary, a premium rate is charged. A sample of 35 surveys provided the survey times shown in the file named Fowle. Based upon past studies, the population standard deviation is assumed known with o = 4 minutes. Is the premium rate justified? (a). Formulate the null and alternative hypotheses for this application. (b). At a = 0.01, what is your conclusion? (c). What is your interpretation of the type II error for this problem? What is its impact on the firm? (d). Given a = 0.01, if the firm want to control the probability of making a type II error to be less than 0.05 when the actual mean time is more than 17 minutes, how large the sample size is needed?
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