An automobile manufacturer is considering using robots for part of its assembly process. Converting to robots is expensive, so it will only be done if there is strong evidence that the proportion of defective installations is less for the robots than for the human assemblers. Let p denote the actual proportion of defective installations for the robots. It is known that the proportion of defective installations for human assemblers in 0.02. a. Write your Null and Alternative Hypotheses. b. In the context of this exercise describe a type I and Type II errors. c. Which value would you select for alpha (.1, .05, .01)? Explain your reasoning.
An automobile manufacturer is considering using robots for part of its assembly process.
Converting to robots is expensive, so it will only be done if there is strong evidence that the
proportion of defective installations is less for the robots than for the human assemblers. Let p
denote the actual proportion of defective installations for the robots. It is known that the
proportion of defective installations for human assemblers in 0.02.
a. Write your Null and Alternative Hypotheses.
b. In the context of this exercise describe a type I and Type II errors.
c. Which value would you select for alpha (.1, .05, .01)? Explain your reasoning.
Type-I error:
The probability of rejecting Null Hypothesis H0 , when H0 is true and it is denoted by and defined as
P(Type I error / H0 is true) =
Here is level of significance and it is known as Producers Risk.
Type-II error:
The probability of accepting Null Hypothesis H0 , when H0 is false and is denoted by and defined as
P(Type II error / H0 is false) =
Here is known as Consumers Risk.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
