Suppose a new production method will be implemented if a hypothesis test supports the conclusion that the new method reduces the mean operating cost per hour. #1 State the appropriate null and alternative hypotheses if the mean cost for the current production method is $280 per hour. A) H0: ? ≤ 280 Ha: ? > 280 B) H0: ? = 280 Ha: ? ≠ 280 C) H0: ? < 280 Ha: ? ≥ 280 D) H0: ? > 280 Ha: ? ≤ 280 E) H0: ? ≥ 280 Ha: ? < 280 #2 What is the type I error in this situation? What are the consequences of making this error? A) It would be claiming ? ≤ 280 when the new method does not lower costs. This mistake could result in implementing the method when it would not lower costs. B)It would be claiming ? < 280 when the new method does not lower costs. This mistake could result in implementing the method when it would not lower costs. C) It would be claiming ? ≥ 280 when the method really would lower costs. This mistake could result in not implementing a method that would lower costs. D)It would be claiming ? > 280 when the method really would lower costs. This mistake could result in not implementing a method that would lower costs. #3 What is the type II error in this situation? What are the consequences of making this error? A) It would be claiming ? ≤ 280 when the new method does not lower costs. This mistake could result in implementing the method when it would not lower costs. B) It would be claiming ? < 280 when the new method does not lower costs. This mistake could result in implementing the method when it would not lower costs. C) It would be claiming ? ≥ 280 when the method really would lower costs. This mistake could result in not implementing a method that would lower costs. D) It would be claiming ? > 280 when the method really would lower costs. This mistake could result in not implementing a method that would lower costs.

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Suppose a new production method will be implemented if a hypothesis test supports the conclusion that the new method reduces the mean operating cost per hour.

State the appropriate null and alternative hypotheses if the mean cost for the current production method is $280 per hour.

H₀: ? ≤ 280

H_a: ? > 280

H₀: ? = 280

H_a: ? ≠ 280

H₀: ? < 280

H_a: ? ≥ 280

H₀: ? > 280

H_a: ? ≤ 280

H₀: ? ≥ 280

H_a: ? < 280

What is the type I error in this situation? What are the consequences of making this error?

A) It would be claiming

? ≤ 280

when the new method does not lower costs. This mistake could result in implementing the method when it would not lower costs.

B)It would be claiming

? < 280

when the new method does not lower costs. This mistake could result in implementing the method when it would not lower costs.

C) It would be claiming

? ≥ 280

when the method really would lower costs. This mistake could result in not implementing a method that would lower costs.

D)It would be claiming

? > 280

when the method really would lower costs. This mistake could result in not implementing a method that would lower costs.

What is the type II error in this situation? What are the consequences of making this error?

A) It would be claiming

? ≤ 280

when the new method does not lower costs. This mistake could result in implementing the method when it would not lower costs.

B) It would be claiming

? < 280

when the new method does not lower costs. This mistake could result in implementing the method when it would not lower costs.

C) It would be claiming

? ≥ 280

when the method really would lower costs. This mistake could result in not implementing a method that would lower costs.

D) It would be claiming

? > 280

when the method really would lower costs. This mistake could result in not implementing a method that would lower costs.

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