Question: What is the chance management will make a Type I error with the decision rule of reallocating resources if the sample mean is more than
What is the chance management will make a Type I error with the decision rule of reallocating resources if the sample mean is more than 7.6 minutes?Chance of a Type I error =
Using the same decision rule, what is the power of the hypothesis test if the true mean time is 8.7 minutes?Power =
Ask A Nurseis a service provided to subscribers of a large health insurance company where customers can call a toll-free number and ask a nurse about non-urgent health problems. The company has set a goal that customers wait no more than 7.5 minutes on hold to speak to a nurse. In order to manage staff hours and availability, they want to set up a quality control process. They will assume that wait times are normally distributed with a standard deviation of 1.6 minutes and take a random sample of 4 calls every shift. If the mean wait time for a shift is more than 7.6 minutes, they will reallocate resources to try to bring the wait time down.
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