Essentials of Modern Business Statistics with Microsoft Office Excel (Book Only)
7th Edition
ISBN: 9781337298353
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 9.2, Problem 7E
a.
To determine
To state: The null and alternative hypotheses.
b.
To determine
To discuss: The Type 1 error and its consequences
c.
To determine
To discuss: The Type II error and its consequences
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Alex hypothesized that students study less than the recommended two hours per credit hour each week outside of class. Alex
performed a hypothesis test and told a colleague that he had evidence to indicate his hypothesis was true. Which of the
following is a true statement that his colleague could have said?
Choose the correct answer below
OA. Alex might have made a Type I Error.
B. There was no chance Alex could have made any error.
OC. Alex might have made a Type Il Error
OD. Alex should never accept the null hypothesis as true
Eric Roberts, Inc. is a company that specializes in tax-deferred investment opportunities for its clients. Recently, this company offered a payroll deduction investment program for the employees of a particular company. The company estimates that the employees are currently averaging $110 or less per month in tax-deferred investments. A sample of 80 employees will be used to test the company’s hypothesis about the current level of investment activity among the population of employees. Assume the employee monthly tax-deferred investment amounts have a standard deviation of $70 and that a 0.05 level of significance will be used in the hypothesis test. What is the probability of the Type II error if the actual mean employee monthly investment is $125?
You may need to use the appropriate appendix table or technology to answer this question.
Sparr Investments, Inc., specializes in tax-deferred investment opportunities for its clients. Recently Sparr offered a payroll deduction investment program for the employees of a particular company. Sparr estimates that the employees are
currently averaging $100 or less per month in tax-deferred investments. A sample of 39 employees will be used to test Sparr's hypothesis about the current level of investment activity among the population of employees. Assume the
employee monthly tax-deferred investment amounts have a population standard deviation of $75 and that a 0.05 level of significance will be used in the hypothesis test.
(a) What is the type II error in this situation?
O Reject Sparr Investments' claim that the employees are currently averaging $100 or less per month in tax-deferred investments when it is true.
O Reject Sparr Investments' claim that the employees are currently averaging…
Chapter 9 Solutions
Essentials of Modern Business Statistics with Microsoft Office Excel (Book Only)
Ch. 9.2 - The label on a 3-quart container of orange juice...Ch. 9.2 - Prob. 7ECh. 9.3 - Prob. 20ECh. 9.4 - The national mean annual salary for a school...Ch. 9.5 - A study by Consumer Reports showed that 64% of...Ch. 9.6 - Prob. 49ECh. 9 - Fifty-two percent of Americans report that they...Ch. 9 - Prob. 9.1.1CPCh. 9 - Prob. 9.1.2CPCh. 9 - Prob. 9.1.4CP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- 1. At many golf clubs, a teaching professional provides a free 10-minute lesson to new customers. A golf magazine reports that golf facilities that provide these free lessons gain, on average, $2,000 in green fees, lessons, or equipment expenditures. A teaching professional believes that the average gain is DIFFER- ENT FROM $2,000. (a) In order to support the claim made by the teaching professional, what null and alternative hypotheses should you test (for each, fill in the blanks with the proper population parameter, proper symbol con- cerning equality or inequality, and proper #, respectively)? Ho: Ha: (b) Suppose you select a = 0.05. What is the probability that the null hypothesis is rejected when the average gain is $2,000? (c) For a = 0.05, specify the rejection region of a large-sample test (make a sketch of the rejection region as well). Use the Rejection Region method for Parts (d), (e), and (f) below. (d) Suppose a large sample was taken which yielded a test statistic 24 =…arrow_forwardCarpetland salespersons average $9,000 per week in sales. Steve Contois, the firm's vice 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. (a) Develop the appropriate null and alternative hypotheses. Ho: H = 9,000 Hai H # 9,000 Ο H0: μ> 9,000 Ha: uS 9,000 Ho: H 9,000 (b) What is the type I error in this situation? What are the consequences of making this error? O It would be concluding u 9,000 when the plan does increase sales. This mistake could result in not implementing a plan that would increase sales. O It would be concluding u 9,000 when the plan does not increase sales. This mistake could result in implementing the plan when it would not help. (c) What is the type II error in this situation? What are the consequences of making this error? O It would be concluding u 9,000 when the plan does not increase…arrow_forwardKaty Deen, who has just been appointed general manager of the Oca's Wellness and Resort Place, has been given instructions to "get things under control". Upon reviewing the business' income statement, Ms. Deen has concluded that the major problem lies in the variable cost of external services for cleaning and maintenance. She has been provided with the following standard cost in dollars per hour of a certain week of three different maintenance groups for cleaning the swimming pool. Level of significance is 0.01. What is the value of the TOTAL of ALL SCORES? Use the TABLE below. Round off final answer to TWO decimal places.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Calculus For The Life SciencesCalculusISBN:9780321964038Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.Publisher:Pearson Addison Wesley,
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
Calculus For The Life Sciences
Calculus
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:Pearson Addison Wesley,
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
What Are Research Ethics?; Author: HighSchoolScience101;https://www.youtube.com/watch?v=nX4c3V23DZI;License: Standard YouTube License, CC-BY
What is Ethics in Research - ethics in research (research ethics); Author: Chee-Onn Leong;https://www.youtube.com/watch?v=W8Vk0sXtMGU;License: Standard YouTube License, CC-BY