Question: In Exercise 11.39, we tested to determine whether the installation of safety equipment was effective in reducing person-hours lost to industrial accidents. The null and

In Exercise 11.39, we tested to determine whether the installation of safety equipment was effective in reducing person-hours lost to industrial accidents. The null and alternative hypotheses were

H0: μ = 0

H1: μ < 0

With σ = 6, α = .10, n = 50, and μ = the mean percentage change. The test failed to indicate that the new safety equipment is effective. The manager is concerned that the test was not sensitive enough to detect small but important changes. In particular, he worries that if the true reduction in time lost to accidents is actually 2% (i.e., μ = −2), then the firm may miss the opportunity to install very effective equipment. Find the probability that the test with σ = 6, α = .10, and n = 50 will fail to conclude that such equipment is effective. Discuss ways to decrease this probability.


Step by Step Solution

3.52 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Rejection region 109 P 109 gi... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

398-M-S-H-T (449).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!