What are the consequences of making this error

Assignment Help Business Economics
Reference no: EM131101274

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 $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?

Reference no: EM131101274

Questions Cloud

What is the exchange rate compatible : The price of a commodity in New Zealand is NZD10, whereas the price of the same commodity in Australia is AUD6. The current exchange rate (NZD/AUD) is 1.15. (a) Is there violation of LOP? (b) If so, what will happen? (c) What is the Australian dollar..
Determine how many permits to issue : Horsehead, Massachusetts lies on a bay inhabited by lobsters. The town council issues permits for trapping lobsters and is trying to determine how many permits to issue. Assume that is costs $2,000 to operate a lobster boat and that if there are x bo..
Give the null and the alternative hypotheses : A producer of various kinds of batteries has been producing "D" size batteries with a life expectancy of 87 hours. Due to an improved production process, management believes that there has been an increase in the life expectancy of their "D" size bat..
Compute the standard error and test statistic : The average gasoline price of one of the major oil companies in Europe has been $1.25 per liter. Recently, the company has undertaken several efficiency measures in order to reduce prices. Management is interested in determining whether their efficie..
What are the consequences of making this error : 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. state the appropriate null and alternative hypotheses if the mean cost for the current prod..
Because high production-changeover time and costs : Because high production-changeover time and costs, a director of manufacturing must convince management that a proposed manufacturing method reduces costs before the new method can be implemented. A research study will measure the cost of the new met..
Law and economics-consider the model of land assembly : Consider the model of land assembly (under the topic Eminent Domain). Specifically, assume that a buyer want to buy two contiguous properties owned by two different owners. You can assume that the properties are identical in all respects. There two p..
Examples of automatic stabilizers except : All of the following are examples of automatic stabilizers except :
Congress engages in contractionary fiscal policy : If Congress engages in contractionary fiscal policy, we can expect that

Reviews

Write a Review

 

Business Economics Questions & Answers

  Benefit from trade-known as absolute advantage

Adam Smith discussed how nations could benefit from trade, known as absolute advantage. What was David Ricardo’s improvement on Smith’s theory? How does it differ?

  Compute the monthly payment smart business decision

Compute the monthly payment and explain whether taking this loan is a smart business decision.

  Cousin edgar

Cousin Edgar is always thinking of the next business idea. This time, he plans to invest in buying two gas stations. He reckons American consumers have come to accept the high gasoline prices, and estimates world prices for gasoline to increase even ..

  Decision tree for deciding whether to enter a new market

Fig. 17-2 in Froeb & McCann shows a decision tree for deciding whether to enter a new market. Because the expected value of entering ($1) was greater than the expected value of not entering ($0), the decision was to enter. Why might the decision make..

  Company do to overcome or even prevent these challenges

What would you say are the two biggest challenges for any company that wants to be a global contender? What are the possible outcomes of these challenges - meaning what would happen if the company fails? What can the company do to overcome or even pr..

  How much was added to gdp

Volkswagen company is Germany own company with a massive factory in Mexico. In 2013, the Volkswagen Mexican factory produced $228 worth of cars and sold $6 to the U.S., $51 to Mexico, and $10 to Germany. How much was added to Germany’s GDP?

  Statements about a market economy

Which one of the following statements about a market economy is? FALSE?

  Discuss your price elasticities for such products

Describe and discuss your price elasticities for such products and discuss the movement of your demand for such a good when the price of that good rises. Share with your classmates whether your demand for the selected good is elastic, unit elastic, o..

  What is the arc income elasticity of demand for tobacco use

Medium household income in County C is $54,021. Medium household income in Country D is $28,739. In County C, 17.4 percent of residents smoke. In County D, 28.4 percent of residents smoke. What is the arc income elasticity of demand for tobacco use?

  Why do prices in monopolistic competitive markets

Why do prices in monopolistic competitive markets remain above the prices that would exist in perfectly competitive markets even in the long run after entry has eliminated above normal profits?

  Risk-free rate-what is the cost of equity

The risk-free rate on 30 year U.S. Treasury bonds is 3.25% and the expected rate of return on the overall stock market is 12%. The company has a beta of 1.6. What is the cost of equity?

  Short-run supply and long-run equilibrium

If there were 60 firms in this market, the short-run equilibrium price of titanium would beper pound. At that price, firms in this industry would   . Therefore, in the long run, firms would   the titanium market.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd