A large manufacturing company is being sued for false advertisement because 15% of the batteries in its shipping boxes are defective, but the company claims that only 5% are defective. You plan to use hypothesis testing to determine whether there is significant evidence that the company is falsely advertising. Part A: State the null and alternate hypotheses for the significance test. Part B: In the context of the problem, what would a Type I error be? A Type II error? Part C: If the hypothesis s tested at a 5% level of significance instead of 1%, how will this affect the power of the test? Part D: If the hypothesis tested based on the sampling of 500 boxes of batteries rather than 100 boxes of batteries, how will this affect the power of the test?

MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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A large manufacturing company is being sued for false advertisement because 15% of the batteries in its shipping boxes are defective, but the company claims that only 5% are defective. You plan to use hypothesis testing to determine
whether there is significant evidence that the company is falsely advertising.
Part A: State the null and alternate hypotheses for the significance test.
Part B: In the context of the problem, what would a Type I error be? A Type II error?
Part C: If the hypothesis is tested at a 5% level of significance instead of 1%, how will this affect the power of the test?
Part D: If the hypothesis is tested based on the sampling of 500 boxes of batteries rather than 100 boxes of batteries, how will this affect the power of the test?
Transcribed Image Text:A large manufacturing company is being sued for false advertisement because 15% of the batteries in its shipping boxes are defective, but the company claims that only 5% are defective. You plan to use hypothesis testing to determine whether there is significant evidence that the company is falsely advertising. Part A: State the null and alternate hypotheses for the significance test. Part B: In the context of the problem, what would a Type I error be? A Type II error? Part C: If the hypothesis is tested at a 5% level of significance instead of 1%, how will this affect the power of the test? Part D: If the hypothesis is tested based on the sampling of 500 boxes of batteries rather than 100 boxes of batteries, how will this affect the power of the test?
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