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?

 

Posted Date: 4/1/2013 1:36:07 AM | Location : United States

Ask an Expert

Related Discussions:- State the appropriate null and alternative hypotheses, Assignment Help, Ask Question on State the appropriate null and alternative hypotheses, Get Answer, Expert's Help, State the appropriate null and alternative hypotheses Discussions

Write discussion on State the appropriate null and alternative hypotheses
Your posts are moderated

Write your message here..

Related Questions

Eco, illustrate and discuss the implications of various market structures (... illustrate and discuss the implications of various market structures (competitive and non-competitive)for price determination.

Differentiate comparative and absolute advantage, What is the difference be... What is the difference between Comparative Advantage and Absolute Advantage? Difference between Comparative Advantage and Absolute Advantage: Comparative advantage: it is

Are credit cards, It is sometimes asked whether credit cards are money sinc... It is sometimes asked whether credit cards are money since many purchases are made using these. Credit cards are a means of obtaining credit and using this to finance expenditure,

Unemployment, Who is considered unemployed? Who is considered unemployed?

Lagrangian of the consumer, This problem substitutes financial health with ... This problem substitutes financial health with housing in a 2 period consumption savings model. The representative consumer has the utility function u(c1, c2) = lnc1 + lnc2 with ea

Create a graph showing average wages, For this question you will use the da... For this question you will use the dataset "march01.dat", which includes wages (column 1), age (column 2), a dummy variable indicating females (column 3), and years of education (c

Npv, The cash flows (CF t ) associated with an investment are listed below ... The cash flows (CF t ) associated with an investment are listed below (assume that each cash flow occurs at the beginning of each year):                         CF 0   = -200

Aggregate supply and the as curve, Aggregate supply and the AS curve ... Aggregate supply and the AS curve The AS curve is the aggregate supply as a function of P. It is horizontal when thesupply is low and upward sloping when the s

Pat, Explain the concept of diminishing returns to labor. Explain the concept of diminishing returns to labor.

Relate overnight rate with money supply, Relate overnight rate with money s... Relate overnight rate with money supply When the overnight interest rate decreases, the money supply increases When the overnight interest rate increases, the money supply d