Essentials Of Statistics For Business & Economics
Essentials Of Statistics For Business & Economics
9th Edition
ISBN: 9780357045435
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: South-Western College Pub
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Chapter 9, Problem 80SE

Soap Production Process. H0: m = 120 and Ha: μ ≠ 120 are used to test whether a bath soap production process is meeting the standard output of 120 bars per batch. Use a .05 level of significance for the test and a planning value of 5 for the standard deviation.

  1. a. If the mean output drops to 117 bars per batch, the firm wants to have a 98% chance of concluding that the standard production output is not being met. How large a sample should be selected?
  2. b. With your sample size from part (a), what is the probability of concluding that the process is operating satisfactorily for each of the following actual mean outputs: 117, 118, 119, 121, 122, and 123 bars per batch? That is, what is the probability of a Type II error in each case?

a.

Expert Solution
Check Mark
To determine

Find the sample size.

Answer to Problem 80SE

Welcome123

The sample size is 45.

Explanation of Solution

Calculation:

The given information is that β=0.02, Power=0.98(=10.02), α=0.05, σ=5, μa=117, and μ0=120.

The null and alternative hypotheses are given below:

Null hypothesis:

H0:μ=120

Alternative hypothesis:

Ha:μ120

Sample size:

The formula for finding the sample size is as follows:

n=(zα2+zβ)2σ2(μ0μa)2

Here, zα2 represents the z-value providing an area of α2 in the upper tail of a standard normal distribution, zβ represents the z-value providing an area of β in the upper tail of a standard normal distribution, σ represents the population standard deviation, μ0 represents the value of the population mean in the null hypothesis, and μa represents the value of the population mean used for the type II error.

For zα2:

It is given that α=0.05. Therefore, α2=0.025.

The cumulative area to the left is as follows:

Area to the left=1Area to the right=10.025=0.975

Critical value:

Use Table 1: Cumulative probabilities for the standard Normal Distribution to find zα2.

  • Locate the area of 0.975 in the body of Table 1.
  • Move left until the first column and note the values as 1.9.
  • Move upward until the top row is reached and note the value as 0.06.

Thus, the critical value zα2 is 1.96

For zβ:

It is given that β=0.02.

The cumulative area to the left is as follows:

Area to the left=1Area to the right=10.02=0.98

Critical value:

Use Table 1: Cumulative probabilities for the standard Normal Distribution to find zβ.

  • Locate the area of 0.98 in the body of Table 1.
  • Move left until the first column and note the values as 2.0.
  • Move upward until the top row is reached and note the value as 0.05.

Thus, the critical value zβ is 2.05.

Substitute 1.96 for zα2, 2.05 for zβ, 5 for σ, 120 for μ0, and 117 for μa in n formula.

n=(1.96+2.05)2(5)2(120117)2=16.0801×25945

Thus, the sample size is 45.

b.

Expert Solution
Check Mark
To determine

Find the probability of making a Type II error.

Answer to Problem 80SE

The probabilities of making a Type II error for μ equals to 117, 118, 119, 121, 122, and 123 are tabulated below:

μβ
1170.0192
1180.2358
1190.7324
1210.7324
1220.2358
1230.0192

Explanation of Solution

Calculation:

The given information is that n=45, μ=117,118,119,121 and 123, σ=5, and α=0.05.

The rejection rule for the two-tailed test using the critical value is as follows:

If zzα2 or zzα2, reject the null hypothesis

Critical value:

α=0.05α2=0.052=0.025

The cumulative area to the left is as follows:

Area to the left=1Area to the right=10.025=0.975

Use Table 1: Cumulative probabilities for the standard Normal Distribution to find zα2.

  • Locate the area of 0.975 in the body of Table 1.
  • Move left until the first column and note the values as 1.9.
  • Move upward until the top row is reached and note the value as 0.06.

Thus, the critical values zα2 and zα2 are 1.96 and –1.96.

Rejection rule:

If z1.96 or z1.96, reject the null hypothesis.

The value x¯1 is obtained below:

x¯1=μz(σn)=1201.96(545)=118.54

The value x¯2 is obtained below:

x¯2=μ+z(σn)=120+1.96(545)=121.46

The rejection rule based on the value of x¯ for the test is as follows:

  • If x¯118.54 or x¯121.46, reject the null hypothesis.
  • If 118.54<x¯<121.46, do not reject the null hypothesis.

For μ=117:

The value of z when μ=117 isas follows:

z=x¯μσn=118.54117545=2.07

Use Table 1: Cumulative probabilities for the standard Normal Distribution to find probability.

  • Locate the value 2.0 in the first column.
  • Locate the value 0.07 in the first row.
  • The intersecting value that corresponds to 2.07 is 0.9808.

Thus, the area value is 0.9808.

The probability of making a Type II error if μ=117 is as follows:

β=10.9808=0.0192

Thus, the probability of making a Type II error if μ=117 is 0.0192.

Similarly, the probabilities of making a Type II error for the remaining μ values are tabulated below:

μz=x¯μσnArea valueβ
117118.54117545=2.070.98080.0192
118118.54118545=0.720.76420.2358
119118.54119545=0.620.26760.7324
121121.46121545=0.620.26760.7324
122121.46122545=0.720.76420.2358
123121.46123545=2.070.98080.0192

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Chapter 9 Solutions

Essentials Of Statistics For Business & Economics

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