Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Standard view
Full view
of .
0 of .
Results for:
P. 1
2009-10-09_040803_Paint

# 2009-10-09_040803_Paint

Ratings: (0)|Views: 0 |Likes:

### Availability:

See more
See less

06/26/2012

pdf

text

original

Assume you are the manager of a paint manufacturing factory. Your company has received complaints from custom
As a manager, what reasonable criteria will you use to set a value for the level of significance to be used in the test?
(1) Testing the claim of the customers:H0: The average volume of paint in the containers
1 gallon, that is μ
1Ha: The average volume of paint in the containers is < 1 gallon, that is
μ < 1
(2) Testing the claim of the Management:H0: The average volume of paint in the containers
≤ 1 gallon, that is μ ≤1
Ha: The average volume of paint in the containers is > 1 gallon, that is
μ > 1
(3) Testing the claim of both the customers and the Management:H0: The average volume of paint in the containers is
1 gallon, that is μ
= 1Ha: The average volume of paint in the containers is different from 1 gallon, that is
μ ≠ 1
(4) Since the problem is not one of life and death, we may set a level of significance of
α = 0.05, which i
(5) If the hypothesis test results in a decision of failing to reject H0, and if indeed, H0 were true (as appr(6) The error made is a Type II error.

rs that the containers hold less than the amount printed on them. On the other, corporate management is concerned t
5) Suppose you arrive at the decision that there is not enough evidence to reject the null hypothesis, could you have
in line with the industry standards
opriate in the three cases), then we have made the correct decision and no error has been made. On th

at the containers hold more than the standard amount. You assign a statistician to verify the claims by the customers
mistake? 6) What type of error result in that case?
e other hand, if the hypothesis test results in a decision of failing to reject H0, and if H0 were false, then