A company manufacturing computer chips finds that 8% of all chips manufactured are defective. Management is concerned that employee inattention is partially responsible for the high defect rate. In an effort to decrease the percentage of defective chips, management decides to offer incentives to employees who have lower defect rates on their shifts. The incentive program is instituted for one month. If successful, the company will continue with the incentive program. a. Write the company's null and alternative hypotheses. Make sure to include the correct parameter, sign and number. Ho: H₁: b. In this context describe a Type I error and the impact such an error would have on the company. O Management thinks the incentive program was effective, when in fact it did not lower the defective rate from 8%. O Management thinks the incentive program did not work, when in fact it did lower the defective rate from 8%. c. In this context describe a Type Il error and the impact such an error would have on the company. O Management thinks the incentive program was effective, when in fact it did not lower the defective rate from 8%. O Management thinks the incentive program did not work, when in fact it did lower the defective rate from 8%.
A company manufacturing computer chips finds that 8% of all chips manufactured are defective. Management is concerned that employee inattention is partially responsible for the high defect rate. In an effort to decrease the percentage of defective chips, management decides to offer incentives to employees who have lower defect rates on their shifts. The incentive program is instituted for one month. If successful, the company will continue with the incentive program. a. Write the company's null and alternative hypotheses. Make sure to include the correct parameter, sign and number. Ho: H₁: b. In this context describe a Type I error and the impact such an error would have on the company. O Management thinks the incentive program was effective, when in fact it did not lower the defective rate from 8%. O Management thinks the incentive program did not work, when in fact it did lower the defective rate from 8%. c. In this context describe a Type Il error and the impact such an error would have on the company. O Management thinks the incentive program was effective, when in fact it did not lower the defective rate from 8%. O Management thinks the incentive program did not work, when in fact it did lower the defective rate from 8%.
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter11: Data Analysis And Probability
Section: Chapter Questions
Problem 8CR
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