Determine the probability and power curve, Macroeconomics

Assignment Help:

Learning Objective: Reinforce understanding of Power, β, and α.

Problem: A packing process is designed to fill steel drums with 400 pounds of a chemical. To determine whether or not the process is working properly, a significance test has been designed. The null and alternative hypotheses are:

H0: μ = 400

Ha: μ ≠ 400

where μ is the average amount of chemical filled in the drums. It is decided to reject H0 if the average weight of a random sample of 36 drums is less than 390 pounds or if the average weight of a random sample of 36 drums is greater than 410 pounds. Assume that the population standard deviation is equal to 42, and that the drum fill weights are normally distributed.

Requirements:

1. Determine the probability (rounded to 2 decimal places) of committing a Type I error for this decision rule? Include all calculations in your submission report.

2. Create a power curve for this decision rule using the following alternate values for μ:

375, 380, 385, 390, 395, 400, 405, 410, 415, 420, 425. Include any manual calculations you do in the assignment submission.

3. Provide specific advice for modifying the test to ensure both of the following

a. a maximum probability of Type I error equal to 0.05

b. a maximum probability of Type II error equal to 0.15 when the mean amount of chemical in the drums is actually 410 pounds.


Related Discussions:- Determine the probability and power curve

Inflation, Social and Political Effects of Inflation in India and Other Cou...

Social and Political Effects of Inflation in India and Other Countries

Social entrepreneur is relying on contributions, If a social entrepreneur i...

If a social entrepreneur is relying on contributions, are there not risks in being accountable and using that money wisely?

Describe the meaning of word -investment, Describe the meaning of word -Inv...

Describe the meaning of word -Investment When we use the word investment, we generally mean "gross investment". Essentially, gross investment comprises all finished goods which

Two countries had the same levelof real gdp per capita, If Country A had fo...

If Country A had four times the initial level of real GDP per capita of Country B and it was growing at 1.4 percent a year, while real GDP was growing at 2.3 percent in Country B,

Change in factor prices, Suppose that a firm has a budget of $30,000, that ...

Suppose that a firm has a budget of $30,000, that the wage rate is $10 per hour, and that the rental rate is about $100 per hour. I f the wage rate increases to $15 per hour and th

IS-LM, THE PRODUCT MARKET Z=C+I+G C=a+bYd I=Io+I1Y-I2i Equilibrium conditio...

THE PRODUCT MARKET Z=C+I+G C=a+bYd I=Io+I1Y-I2i Equilibrium condition, Y=Z, where Y represents output and Z is aggregate spending. THE FINANCIAL MARKET Md=MT+Mp MT=MTo+MT1Y Mp=Mpo

Why does an indifference curve never meet, No indifference curve can inters...

No indifference curve can intersect due to all points on indifference curve are ranked equally preferred and ranked or less more preferred than each other point on the curve.

Inflation in sweden, Inflation in Sweden Figure Inflation in Swed...

Inflation in Sweden Figure Inflation in Sweden 1830 - 2010. Source: SCB. There are four aspects which are interesting when we look at inflation data for Sweden

Lilie, What are the requirements for something to be considered money? Why ...

What are the requirements for something to be considered money? Why does the dollar have value?

What causes a supply curve to shift, What causes a supply curve to shift? ...

What causes a supply curve to shift? a. Changes into Input Prices An input is a good which is used to generate another good. b. Changes into Technology c. Chang

Write Your Message!

Captcha
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