You work for a company that manufactures suitcases in various colors. You come up with what you think is a great idea for a new color. Your boss is concerned that selling another color will increase the manufacturing costs, so she wants to be 99% certain that at least 15% of all the suitcases sold will be this new color before agreeing to implement it permanently. Your company sells your suitcases on multiple online sites and so you decide to market the new color on one site only for one month as a test to see what proportion of the suitcases sold are the new color. When you report the results of the test to your boss you make a Type I error. Give another possible explanation (different from the one in the previous question), that might explain why you made this error. (Hint: There are many possible correct answers to this question.)
You work for a company that manufactures suitcases in various colors. You come up with what you think is a great idea for a new color. Your boss is concerned that selling another color will increase the manufacturing costs, so she wants to be 99% certain that at least 15% of all the suitcases sold will be this new color before agreeing to implement it permanently. Your company sells your suitcases on multiple online sites and so you decide to market the new color on one site only for one month as a test to see what proportion of the suitcases sold are the new color. When you report the results of the test to your boss you make a Type I error. Give another possible explanation (different from the one in the previous question), that might explain why you made this error. (Hint: There are many possible correct answers to this question.)
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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Question
Transcribed Image Text:You work for a company that manufactures suitcases in various
colors. You come up with what you think is a great idea for a new
color. Your boss is concerned that selling another color will
increase the manufacturing costs, so she wants to be 99% certain
that at least 15% of all the suitcases sold will be this new color
before agreeing to implement it permanently. Your company sells
your suitcases on multiple online sites and so you decide to
market the new color on one site only for one month as a test to
see what proportion of the suitcases sold are the new color.
When you report the results of the test to your boss you make a
Type I error.
Transcribed Image Text:Give another possible explanation (different from the one in the previous question), that
might explain why you made this error. (Hint: There are many possible correct answers to
this question.)
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