# Question: Suppose a new production method will be implemented if a

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 $220 per hour.

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

c. What is the Type II error in this situation? What are the consequences of making this error?

a. State the appropriate null and alternative hypotheses if the mean cost for the current production method is $220 per hour.

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

c. What is the Type II error in this situation? What are the consequences of making this error?

## Answer to relevant Questions

Consider the following hypothesis test:H0: μ ≥ 20Ha: μ < 20A sample of 50 provided a sample mean of 19.4. The population standard deviation is 2.a. Compute the value of the test statistic.b. What is the p-value?c. Using ...Consider the following hypothesis test:H0: μ ≥ 22H0: μ < 22A sample of 75 is used and the population standard deviation is 10. Compute the p-value and state your conclusion for each of the following sample results. Use ...Consider the following hypothesis test:H0: μ ≤ 12H0: μ > 12A sample of 25 provided a sample mean x = 14 and a sample standard deviation s = 4.32.a. Compute the value of the test statistic.b. Use the t distribution table ...According to the National Automobile Dealers Association, the mean price for used cars is $10,192. A manager of a Kansas City used car dealership reviewed a sample of 50 recent used car sales at the dealership in an attempt ...According to the University Of Nevada Center for Logistics Management, 6% of all merchandise sold in the United States gets returned (BusinessWeek, January 15, 2007). A Houston department store sampled 80 items sold in ...Post your question