Question: The average wait time on the phone for taxpayers calling the IRS in 2012 was 1,080 seconds. Suppose (if you can use your imagination) that

The average wait time on the phone for taxpayers calling the IRS in 2012 was 1,080 seconds. Suppose (if you can use your imagination) that the IRS made operational changes in an effort to reduce wait times during 2013. To test the effectiveness of these changes, a random sample of 50 phone calls was selected and the wait time of each call was recorded. Assume the standard deviation for the wait time is 250 seconds.

a. Explain in your own words how Type I and Type II errors can occur in this hypothesis test.

b. Using σ = 0.02, calculate the probability of a Type II error occurring if the actual average wait time per call is 1,014 seconds.

c. Using σ = 0.02, calculate the probability of a Type II error occurring if the actual average wait time per call is 960 seconds.

d. Explain the differences in the results you calculated in parts b and c.

Step by Step Solution

3.55 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a H 0 1080 secondsH 1 10075Pz018 ... 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

483-M-S-H-T (1464).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!