Question

A production line operation is tested for filling-weight accuracy using the following hypotheses. Hypothesis Conclusion and Action Ho: μ = 16 Filling okay, keep running HA: μ ≠ 16 Filling off standard, stop and adjust machine Significance level is 5%. a) What would a Type I error mean in this situation? What kind of unnecessary cost is going to occur if we make Type I error? b) What is the probability of Type I error? c) What would a Type II error mean in this situation? What kind of damage/cost to the company it could cause?

Answer 1

Type I error is rejecting H0 when it is true. In this case we are assuming weight accuracy is different from 16 but it is actually 16. This may cause a huge cost to the supplier. He might think he filled 16 unit but it may be less than or more than 16 unit.

b) PROBABILITY OF TYPE I ERROR IS 0.05

c) Accepting H0 when it is false. Assuming that weight accuracy is different from 16 unit but it is actually 16. This will lead to the rejection of machine. Because it is not showing exact measurement.