Question

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 $205 per hour.

H0: mu ( ≥, ≤, <, >, =, =(slash) ) 205

Ha: mu ( ( ≥, ≤, <, >, =, =(slash) ) 205

B.) What is the Type I error in this situation? What are the consequences of making this error?

Claiming mu ( ( ≥, ≤, <, >, =, =(slash) ) 205 when the new method ( does not , really would) lower costs. A mistake could be implementing the method when it (does not, does) help.

Claiming mu ( ≥, ≤, <, >, =, =(slash) ) 205 when the new method ( does not, really would) lower costs. This could lead to not implementing a method that (would, would not) lower costs.

Answer 1