# Question: The number of potential sites for the first stage test in

The number of potential sites for the first-stage test in Exercise 11.66 is quite large and the readings can be expensive. Accordingly, the test is conducted with a sample of 25 observations. Because the second-stage cost is high, the significance level is set at 1%.

A financial analysis of the potential profits and costs reveals that if the mean wind velocity is as high as 25 mph, the windmill would be extremely profitable.

Calculate the probability that the first-stage test will not conclude that the site is feasible when the actual mean wind velocity is 25 mph. (Assume that σ is 8.)

Discuss how the process can be improved.

A financial analysis of the potential profits and costs reveals that if the mean wind velocity is as high as 25 mph, the windmill would be extremely profitable.

Calculate the probability that the first-stage test will not conclude that the site is feasible when the actual mean wind velocity is 25 mph. (Assume that σ is 8.)

Discuss how the process can be improved.

## Answer to relevant Questions

a. Compute the p-value in order to test the following hypotheses given that x̄ = 52, n = 9, and σ = 5.H0: µ = 50H1: µ > 50b. Repeat part (a) with n = 25.c. Repeat part (a) with n = 100.d. Describe what happens to the ...a. Calculate the p-value of the test described here.H0: μ = 60H1: μ > 60x̄ = 72, n = 25, σ = 20b. Repeat part (a) with x̄ = 68.c. Repeat part (a) with x̄ = 64.d. Describe the effect on the test statistic and the ...Redo Example 11.2 witha. σ = 2b. σ = 10c. What happens to the test statistic and the p-value when σ increases?Spam e-mail has become a serious and costly nuisance. An office manager believes that the average amount of time spent by office workers reading and deleting spam exceeds 25 minutes per day.To test this belief, he takes a ...A Fast-Food Franchiser is considering building a restaurant at a certain location. Based on financial analyses, a site is acceptable only if the number of pedestrians passing the location averages more than 100 per hour. The ...Post your question