Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN: 9781305627734
Author: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher: Cengage Learning
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Textbook Question
Chapter 6, Problem 30P
Suppose a new production method will be implemented if a hypothesis test supports the conclusion that the new method reduces the
- a. State the appropriate null and alternative hypotheses if the mean cost for the current production method is $220 per hour.
- b. What is the Type I error in this situation? What are the consequences of making this error?
- c. What is the Type II error in this situation? What are the consequences of making this error?
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Suppose a new production method will be implemented if a hypothesis test supports theconclusion that the new method reduces the mean operating cost per hour.a. State the appropriate null and alternative hypotheses if the mean cost for the currentproduction method is $220 per hour.b. what is the type i error in this situation? what are the consequences of making this error?c. what is the type ii error in this situation? what are the consequences of making this error?
An average cost of the production currently in a company is 150$. The company has a plan to begin a new method if a hypothesis test concludes that it reduces the average operating cost an hour.
a. what is the null and alternative hypothesis
b. what is the type 1 error and its consequences?
c. what is the type 2 error and its consequences.
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.
a. State the appropriate null and alternative hypotheses if the mean cost for the current production method is $205 per
hour.
Ho: P2
v205
v 205
b. What is the Type I error in this situation?
Claiming A
205 when the new method - Select your answer - Vlower costs.
Select your answer
What are the consequences of making this error?
A mistake could be implementing the method when it
Select
your answer -Yhelp.
C. What is the Type II error in this situation?
Claiming - Select your answer- v205 when the new method
Select your answer - V| lower costs,
What are the consequences of making this error?
This could lead to not implementing a method that|-Select your answer -
v lower costs.
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Chapter 6 Solutions
Essentials of Business Analytics (MindTap Course List)
Ch. 6 - The American League consists of 15 baseball teams....Ch. 6 - The U.S. Golf Association is considering a ban on...Ch. 6 - A simple random sample of 5 months of sales data...Ch. 6 - Morningstar publishes ratings data on 1,208...Ch. 6 - One of the questions in the Pew Internet &...Ch. 6 - In this chapter we showed how a simple random...Ch. 6 - The College Board reported the following mean...Ch. 6 - Prob. 8PCh. 6 - The Economic Policy Institute periodically issues...Ch. 6 - The state of California has a mean annual rainfall...
Ch. 6 - The president of Doerman Distributors, Inc.,...Ch. 6 - Prob. 12PCh. 6 - People end up tossing 12% of what they buy at the...Ch. 6 - Prob. 14PCh. 6 - The International Air Transport Association...Ch. 6 - Prob. 16PCh. 6 - Health insurers are beginning to offer...Ch. 6 - The average annual premium for automobile...Ch. 6 - Prob. 19PCh. 6 - According to Thomson Financial, last year the...Ch. 6 - The Pew Research Center Internet Project conducted...Ch. 6 - For many years businesses have struggled with the...Ch. 6 - The manager of the Danvers-Hilton Resort Hotel...Ch. 6 - The manager of an automobile dealership is...Ch. 6 - A production line operation is designed to fill...Ch. 6 - Because of high production-changeover time and...Ch. 6 - Duke Energy reported that the cost of electricity...Ch. 6 - Prob. 28PCh. 6 - Carpetland salespersons average 8,000 per week in...Ch. 6 - Suppose a new production method will be...Ch. 6 - Prob. 31PCh. 6 - A shareholders’ group, in lodging a protest,...Ch. 6 - Prob. 33PCh. 6 - Prob. 34PCh. 6 - Prob. 35PCh. 6 - According to the National Automobile Dealers...Ch. 6 - What percentage of the population live in their...Ch. 6 - Prob. 38PCh. 6 - Ten years ago 53% of American families owned...Ch. 6 - Prob. 40PCh. 6 - Prob. 41PCh. 6 - Prob. 42PCh. 6 - The Port Authority sells a wide variety of cables...Ch. 6 - The Port Authority also wants to determine if the...Ch. 6 - Prob. 1C
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- 3. A drug considered unsafe if more than 5% of the patients develop serious side effects. In order to study the safety of a new drug, a Company tests the following null and alternative hypotheses. H :T 0.05: Discuss the type I and Type II error in this situation. Is this a good test? Explain. aarrow_forwardHelp!!arrow_forwardSuppose 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. (a) State the appropriate null and alternative hypotheses if the mean cost for the current production method is $240 per hour. O Ho: H2 240 Ha: u 240 Ho: H = 240 H: µ # 240 Ho: u 240 Ha: us 240 (b) What is the type I error in this situation? What are the consequences of making this error? It would be claiming u 240 when the method really would lower costs. This mistake could result in not implementing a method that would lower costs. O It would be claiming u > 240 when the method really would lower costs. This mistake could result in not implementing a method that would lower costs. (c) What is the type II error in this situation? What are the consequences of making this error? It would be claiming u 240 when the method really would lower costs. This mistake could result in not implementing a method that would lower costs. It…arrow_forward
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