Question

The Lion-L Corporation makes model trains for the Christmas sales season. They purchase train track from Tracks-R-Us. If there are more than 5% defective track sections in a shipment of track, Lion-L rejects the shipment and returns it to Tracks-R-Us. The hypotheses for this situation are: H0: μ < .05 (Accept the track) H1: μ > .05 (Reject the track) A) What does a Type I error and Type ll mean in terms of this problem?

Answer 1

H0: μ < 0.05 (Accept the track)

H1: μ > 0.05 (Reject the track)

1) Type I error:

Type I error occurs when we reject the null hypothesis even though the null hypothesis is true.

in this case type I error occurs when we reject the null hypothesis that there are less than 5% defective track sections in a shipment of track, but in fact there are less than  5% defective track sections in a shipment of track

2) Type II error

Type II error occurs when we do not reject the null hypothesis even though the null hypothesis is false.

in this case type II error occurs when we do not reject the null hypothesis that there are less than 5% defective track sections in a shipment of track, but in fact there are greater than 5% defective track sections in a shipment of track