Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)
6th Edition
ISBN: 9781337115186
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: Cengage Learning
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Textbook Question
Chapter 9.2, Problem 8E
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?
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Suppose a new production method will be implemented if a hypothesis test supports theconclusion 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 currentproduction 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?
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.
#1
State the appropriate null and alternative hypotheses if the mean cost for the current production method is $280 per hour.
A)
H0: ? ≤ 280
Ha: ? > 280
B)
H0: ? = 280
Ha: ? ≠ 280
C)
H0: ? < 280
Ha: ? ≥ 280
D)
H0: ? > 280
Ha: ? ≤ 280
E)
H0: ? ≥ 280
Ha: ? < 280
#2
What is the type I error in this situation? What are the consequences of making this error?
A) It would be claiming
? ≤ 280
when the new method does not lower costs. This mistake could result in implementing the method when it would not lower costs.
B)It would be claiming
? < 280
when the new method does not lower costs. This mistake could result in implementing the method when it would not lower costs.
C) It would be claiming
? ≥ 280
when the method really would lower costs. This mistake could result in not implementing a method…
In the past, the mean running time for a certain type of flashlight battery has been 9.6 hours. The manufacturer has introduced a change in the production method and wants to perform a hypothesis test to determine whether the mean running time has decreased as a result. A hypothesis test is to be performed. Determine the null and alternative hypotheses.
A.
H0: µ ¥ 9.6 hours and H1: µ = 9.6 hours
B.
H0: µ = 9.6 hours and H1: µ ¥ 9.6 hours
C.
H0: µ = 9.6 hours and H1: µ > 9.6 hours
D.
H0: µ = 9.6 hours and H1: µ < 9.6 hours
Chapter 9 Solutions
Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)
Ch. 9.1 - 1. The manager of the Danvers-Hilton Resort Hotel...Ch. 9.1 - 2. The manager of an automobile dealership is...Ch. 9.1 - 3. A production line operation is designed to fill...Ch. 9.1 - 4. Because of high production-changeover time and...Ch. 9.2 - 5. Duke Energy reported that the cost of...Ch. 9.2 - Prob. 6ECh. 9.2 - Carpet Salesperson Salaries. Carpetland...Ch. 9.2 - 8. Suppose a new production method will be...Ch. 9.3 - Consider the following hypothesis test:
A sample...Ch. 9.3 - Prob. 10E
Ch. 9.3 - Consider the following hypothesis test:
A sample...Ch. 9.3 - Prob. 12ECh. 9.3 - Prob. 13ECh. 9.3 - Prob. 14ECh. 9.3 - Federal Tax Returns. According to the IRS,...Ch. 9.3 - In a study entitled How Undergraduate Students Use...Ch. 9.3 - The mean hourly wage for employees in...Ch. 9.3 - Young millennials, adults aged 18 to 34, are...Ch. 9.3 - The Internal Revenue Service (IRS) provides a...Ch. 9.3 - Prescription Drug Costs. Annual expenditure for...Ch. 9.3 - Cost of Telephone Surveys. Fowle Marketing...Ch. 9.3 - Time in Supermarket Checkout Lines. CCN and...Ch. 9.4 - Consider the following hypothesis test:
A sample...Ch. 9.4 - Consider the following hypothesis test:
A sample...Ch. 9.4 - Consider the following hypothesis test:
A sample...Ch. 9.4 - Prob. 26ECh. 9.4 - Which is cheaper: eating out or dining in? The...Ch. 9.4 - CEO Tenure. A shareholders’ group, in lodging a...Ch. 9.4 - The national mean annual salary for a school...Ch. 9.4 - Time in Child Care. The time married men with...Ch. 9.4 - Chocolate Consumption. The United States ranks...Ch. 9.4 - Used Car Prices. According to the National...Ch. 9.4 - Automobile Insurance Premiums. The Onsure.com...Ch. 9.4 - Prob. 34ECh. 9.5 - Consider the following hypothesis test:
A sample...Ch. 9.5 - Prob. 36ECh. 9.5 - The U.S. Bureau of Labor Statistics reports that...Ch. 9.5 - Attitudes toward Supermarket Brands. A study by...Ch. 9.5 - Prob. 39ECh. 9.5 - Prob. 40ECh. 9.5 - Ten years ago 53% of American families owned...Ch. 9.5 - Returned Merchandise. According to the University...Ch. 9.5 - Prob. 43ECh. 9.5 - Prob. 44ECh. 9.5 - The American Association of Individual Investors...Ch. 9.6 - A large department of the Federal Government wants...Ch. 9.6 - CEOs who belong to a popular business-oriented...Ch. 9.6 - Prob. 48ECh. 9.6 - Prob. 49ECh. 9 - Production Line Fill Weights. A production line...Ch. 9 - Scholarship Examination Scores. At Western...Ch. 9 - Exposure to Background Television. CNN reports...Ch. 9 - The Wall Street Journal reported that bachelor’s...Ch. 9 - Data from the Office for National Statistics show...Ch. 9 - The mean time to earn a bachelor’s degree is 5.8...Ch. 9 - Prob. 56SECh. 9 - In Hamilton County, Ohio, the mean number of days...Ch. 9 - Fifty-two percent of Americans report that they...Ch. 9 - Prob. 59SECh. 9 - Prob. 60SECh. 9 - The unemployment rate for 18- to 34-year-olds was...Ch. 9 - Prob. 62SECh. 9 - In recent years more people have been working past...Ch. 9 - Case Problem 1 Quality Associates, Inc.
Quality...Ch. 9 - Case problem 2 Ethical Behavior of Business...
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- Because of high production-changeover time and costs, a director of manufacturing must convince management that a proposed manufacturing method reduces costs before the new method can be implemented. The current production method operates with a mean cost of $260 per hour. A research study will measure the cost of the new method over a sample production period. (a) Develop the null and alternative hypotheses most appropriate for this study. H0: ? < 260 Ha: ? ≥ 260 H0: ? > 260 Ha: ? ≤ 260 H0: ? ≤ 260 Ha: ? > 260 H0: ? = 260 Ha: ? ≠ 260 H0: ? ≥ 260 Ha: ? < 260 (b) Comment on the conclusion when H0 cannot be rejected. There is not enough evidence to conclude that the new method reduces costs. Management should consider implementing the new method.There is enough evidence to conclude that the new method reduces costs. Management should not consider implementing the new method. There is enough evidence to conclude that the new method reduces costs. Management…arrow_forward"In your response indicate whether CPAs in states that have flat state income tax rates work fewer hours per week during tax season compared to the US average. You will want to formally set up H0 and Ha, report either the test statistic (z-value) or p-value, and explain why you either reject or fail to reject your null hypothesis."arrow_forwardIndicate whether CPAs in states that have flat state income tax rates work fewer hours per week during tax season compared to the US average. You will want to formally set up H0 and Ha, report either the test statistic (z-value) or p-value, and explain why you either reject or fail to reject your null hypothesis.arrow_forward
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