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.

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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.
#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.
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