A manufacturer of hand-held calculators receives large shipments of printed circuits from a supplier. It is too costly and time-consuming to inspect all incoming circuits, so when each shipment arrives, a sample is selected for inspection. Information from the sample is then used to test Ho: P = 0.01 versus H₂: p > 0.01, where p is the actual proportion of defective circuits in the shipment. If the null hypothesis is not rejected, the shipment is accepted, and the circuits are used in the production of calculators. If the null hypothesis is rejected, the entire shipment is returned to the supplier because of inferior quality. (A shipment is defined to be of inferior quality if it contains more than 1% defective circuits.) (a) In this context, define Type I and Type II errors. (Select all that apply.) A Type I error is obtaining convincing evidence that more than 1% of a shipment is defective when in fact (at most) 1% of the shipment is defective. A Type I error is not obtaining convincing evidence that more than 1% of a shipment is defective when in fact more than 1% of the shipment is defective. □ A Type II error is not obtaining convincing evidence that more than 1% of a shipment is defective when in fact more than 1% of the shipment is defective. A Type II error is obtaining convincing evidence that more than 1% of a shipment is defective when in fact (at most) 1% of the shipment is defective. (b) From the calculator manufacturer's point of view, which type of error is considered more serious? O A Type I error, as the calculator manufacturer would use defective circuits in the calculators. O A Type II error, as the calculator manufacturer would use defective circuits in the calculators. (c) From the printed circuit supplier's point of view, which type of error is considered more serious? O A Type I error as the supplier would receive back, and not be paid for, a shipment of circuits that was in fact acceptable. O A Type II error as the supplier would receive back, and not be paid for, a shipment of circuits that was in fact acceptable.

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A manufacturer of hand-held calculators receives large shipments of printed circuits from a supplier. It is too costly and time-consuming to inspect all incoming circuits, so when each shipment
arrives, a sample is selected for inspection. Information from the sample is then used to test Ho: p = 0.01 versus Ha: p > 0.01, where p is the actual proportion of defective circuits in the
shipment.
If the null hypothesis is not rejected, the shipment is accepted, and the circuits are used in the production of calculators. If the null hypothesis is rejected, the entire shipment is returned to
the supplier because of inferior quality. (A shipment is defined to be of inferior quality if it contains more than 1% defective circuits.)
(a) In this context, define Type I and Type II errors. (Select all that apply.)
O A Type I error is obtaining convincing evidence that more than 1% of a shipment is defective when in fact (at most) 1% of the shipment is defective.
A Type I error is not obtaining convincing evidence that more than 1% of a shipment is defective when in fact more than 1% of the shipment is defective.
□ A Type II error is not obtaining convincing evidence that more than 1% of a shipment is defective when in fact more than 1% of the shipment is defective.
A Type II error is obtaining convincing evidence that more than 1% of a shipment is defective when in fact (at most) 1% of the shipment is defective.
(b) From the calculator manufacturer's point of view, which type of error is considered more serious?
O A Type I error, as the calculator manufacturer would use defective circuits the culators.
O A Type II error, as the calculator manufacturer would use defective circuits in the calculators.
(c) From the printed circuit supplier's point of view, which type of error is considered more serious?
O A Type I error as the supplier would receive back, and not be paid for, a shipment of circuits that was in fact acceptable.
O A Type II error as the supplier would receive back, and not be paid for, a shipment of circuits that was in fact acceptable.
Transcribed Image Text:A manufacturer of hand-held calculators receives large shipments of printed circuits from a supplier. It is too costly and time-consuming to inspect all incoming circuits, so when each shipment arrives, a sample is selected for inspection. Information from the sample is then used to test Ho: p = 0.01 versus Ha: p > 0.01, where p is the actual proportion of defective circuits in the shipment. If the null hypothesis is not rejected, the shipment is accepted, and the circuits are used in the production of calculators. If the null hypothesis is rejected, the entire shipment is returned to the supplier because of inferior quality. (A shipment is defined to be of inferior quality if it contains more than 1% defective circuits.) (a) In this context, define Type I and Type II errors. (Select all that apply.) O A Type I error is obtaining convincing evidence that more than 1% of a shipment is defective when in fact (at most) 1% of the shipment is defective. A Type I error is not obtaining convincing evidence that more than 1% of a shipment is defective when in fact more than 1% of the shipment is defective. □ A Type II error is not obtaining convincing evidence that more than 1% of a shipment is defective when in fact more than 1% of the shipment is defective. A Type II error is obtaining convincing evidence that more than 1% of a shipment is defective when in fact (at most) 1% of the shipment is defective. (b) From the calculator manufacturer's point of view, which type of error is considered more serious? O A Type I error, as the calculator manufacturer would use defective circuits the culators. O A Type II error, as the calculator manufacturer would use defective circuits in the calculators. (c) From the printed circuit supplier's point of view, which type of error is considered more serious? O A Type I error as the supplier would receive back, and not be paid for, a shipment of circuits that was in fact acceptable. O A Type II error as the supplier would receive back, and not be paid for, a shipment of circuits that was in fact acceptable.
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