Part 9-100

a. Based on the sample data, what conclusion should be reached if the hypothesis is tested at a significance level of 0.05? Show the decision rule. b. Determine whether a Type I or Type II error for this hypothesis test would be more serious. Given your determination, would you advocate raising or lowering the significance level for this test? Explain your reasoning. c. Confirm that the sample proportion's distribution can be approximated by a normal distribution. d. Based on the sample data, what conclusion should be drawn about the use of knock-off clubs? Is the speaker's statement justified? 9-100. TOMRA Systems ASA is a Norwegian company that manufactures reverse vending machines (RVMs). In most cases, RVMs are used in markets that have deposits on beverage containers, offering an efficient and convenient method of identifying the deposit amount of each container returned and providing a refund to the customer. For a single-container machine to pay for itself in one year, it would need to generate an average monthly income of more than $750. A random sample of single-machine monthly incomes was obtained to determine if that goal could be reached. This sample is contained in the file labeled RVM- Income. Conduct a hypothesis test to determine if the goal can be reached. Use a significance level of 0.05 and the p-value approach. a. Based on the sample data, what conclusion should be reached if the hypothesis is tested at a significance level of 0.05? Show the decision rule. b. Determine whether a Type I or Type II error for this hypothesis test would be more serious. Given your determination, would you advocate raising or lowering the significance level for this test? Explain your reasoning. c. Confirm that the sample proportion's distribution can be approximated by a normal distribution. d. Based on the sample data, what conclusion should be drawn about the use of knock-off clubs? Is the speaker's statement justified? 9-100. TOMRA Systems ASA is a Norwegian company that manufactures reverse vending machines (RVMs). In most cases, RVMs are used in markets that have deposits on beverage containers, offering an efficient and convenient method of identifying the deposit amount of each container returned and providing a refund to the customer. For a single-container machine to pay for itself in one year, it would need to generate an average monthly income of more than $750. A random sample of single-machine monthly incomes was obtained to determine if that goal could be reached. This sample is contained in the file labeled RVM- Income. Conduct a hypothesis test to determine if the goal can be reached. Use a significance level of 0.05 and the p-value approach