The manager at Costello Drug Store assumes the company’s employees are honest. However, there have been many shortages from the cash register lately. There is only one employee who could have taken money from the register during these periods. Realizing that the shortages might have resulted from the employee inadvertently giving incorrect change to customers, the employer does not know whether to forget the situation or accuse the employee of theft. In words, what are the null and alternative hypotheses? Explain your choices. 3.1 What constitutes a Type 1 error 3.2 What is a Type II error? Which do you think is more serious? Explain. 3.3 A new internet provider claims that using their system you can get transmission speeds of 400 kilobits per second. Specify, both statistically and in English, the null and alternative hypotheses a potential customer should investigate if she is worried that the connection is really slower than advertised. Explain your reasoning. 3.4 The system is tested on a sample of one hundred computers and the average connection speed is found to be far below 400 kilobits. What hypothesis should probably be rejected? Explain. If the customer needs a connection speed of 400 kilobits to run her application programs, what is the business decision that corresponds to the decision regarding the hypotheses? 3.5 How would your answers to (3.4) if you were looking at the problem from the internet provider’s point of view and wanted to prove to potential customers that your system was good?
The manager at Costello Drug Store assumes the company’s employees are honest. However, there have been many shortages from the cash register lately. There is only one employee who could have taken money from the register during these periods. Realizing that the shortages might have resulted from the employee inadvertently giving incorrect change to customers, the employer does not know whether to forget the situation or accuse the employee of theft. In words, what are the null and alternative hypotheses? Explain your choices.
3.1 What constitutes a Type 1 error
3.2 What is a Type II error? Which do you think is more serious? Explain.
3.3 A new internet provider claims that using their system you can get transmission speeds of 400 kilobits per second. Specify, both statistically and in English, the null and alternative hypotheses a potential customer should investigate if she is worried that the connection is really slower than advertised. Explain your reasoning.
3.4 The system is tested on a sample of one hundred computers and the average connection speed is found to be far below 400 kilobits. What hypothesis should probably be rejected? Explain. If the customer needs a connection speed of 400 kilobits to run her application programs, what is the business decision that corresponds to the decision regarding the hypotheses?
3.5 How would your answers to (3.4) if you were looking at the problem from the internet provider’s point of view and wanted to prove to potential customers that your system was good?
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