Question
Ch. 9.3 Question #7
9.3 Population Mean: Known 393 The label on a 3 quart container of orange juice states that the orange juice contains average of 1 gram of fa could be used to test the claim on the label. 6. quart container of orange juice states that the orange juice contains an t or less. Answer the following questions for a hypothesis test that a. Develop the appropriate null and alternative hypotheses b. What is the Type I error in this situation? What are the consequences of making this error consequences of making this error? 7. Carpetland salespersons average $8000 per week in sales. Steve Contois, the firm's vice c. What is the Type II error in this situation? What are the consequences of making th president, proposes a compensation plan with new selling incentives. Steve hopes that the results of a trial selling period will enable him to conclude that the compensation plan increases the average sales per salesperson. Develop the appropriate null and alternative hypotheses hat is the Type I error in this situation? What are the consequences of making this error? What is the Type Il error in this situation? What are the consequences of making this error? 8. Suppose a new production method wil be implemented if a hypothesis test supports the b. W c. 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 a. 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? 9.3 ) Population Mean: Known In Chapter 8 we said that the known case corresponds to applications in which histori- cal data and/or other information are available that enable us to obtain a good estimate of the population standard deviation prior to sampling. In such cases the population standard dered known In this section we show how
Explanation / Answer
Here,
a,
H0: There is no effect of the compensation plan on the average sales per salesperson.
H1: The average sales per salesperson increases due to the compensation plan.
b,
Type 1 error: Here, we say that type 1 error has occured when we infer an increase in the average sales per salesperson due to the compensation plan whereas in reality it remains the same.
This can result as a bad impact on the company's overall revenue.
c,
Type 2 error: Here, we say that type 2 error has occured when we infer there is no effect of the compensation plan on the average sales per salesperson whereas in reality it increases the average salesper salesperson.
This can result in missing out on the opportunity cost .
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