Question: A manufacturer of handheld calculators receives large shipments of printed circuits from a supplier. It is too costly and time-consuming to inspect all incoming circuits,

A manufacturer of handheld calculators receives large shipments of printed circuits from a supplier. It is too costly and time-consuming to inspect all incoming circuits, so when each shipment arrives, a sample is selected for inspection. A shipment is defined to be of inferior quality if it contains more than 1% defective circuits. Information from the sample is used to test H0: p = 0.01 versus Ha: p > 0.01, where p is the actual proportion of defective circuits in the shipment. If the null hypothesis is not rejected, the shipment is accepted, and the circuits are used in the production of calculators. If the null hypothesis is rejected, the entire shipment is returned to the supplier because of inferior quality.

a. Complete the last two columns of the following table.

b. From the calculator manufacturer's point of view, which type of error would be considered more serious?
c. From the printed circuit supplier's point of view, which type of error would be considered more serious?

Description of Error in Definition of Consequence Error Reject a true Fail to reject Contextof Error Error Type I error Type II error a false Ho

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