H0: μ = 120 and Ha: μ ≠ 120 are used to test whether a bath soap production process is meeting the standard output of 120 bars per batch. Use a .05 level of significance for the test and a planning value of 5 for the standard deviation.
a. If the mean output drops to 117 bars per batch, the firm wants to have a 98% chance of concluding that the standard production output is not being met. How large a sample should be selected?
b. With your sample size from part (a), what is the probability of concluding that the process is operating satisfactorily for each of the following actual mean outputs: 117, 118, 119, 121, 122, and 123 bars per batch? That is, what is the probability of a Type II error in each case?

  • CreatedSeptember 20, 2015
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