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Manufacturers that practice sole sourcing. If a manufacturer (the vendee) buys all items of a particular type from a particular vendor, the manufacturer is practicing sole sourcing (Schonberger and Knod, Operations Management, 2001). As part of a sole-sourcing arrangement, a vendor agrees to periodically supply its vendee with sample data from its production process. The vendee uses the data to investigate whether the mean length of rods produced by the vendor's production process is truly 5.0 millimetres (mm) or more, as claimed by the vendor and desired by the vendee.

a. If the production process has a standard deviation of .01 mm, the vendor supplies n = 100 items to the vendee, and the vendee uses a = .05 in testing H0: m = 5.0 mm against Ha: m < 5.0 mm, what is the probability that the vendee's test will fail to reject the null hypothesis when in fact m = 4.9975 mm? What is the name given to this Type of error?

b. Refer to part a. What is the probability that the vendee's test will reject the null hypothesis when m = 5.0? What is the name given to this Type of error?

c. What is the power of the test to detect a departure of .0025 mm below the specified mean rod length of 5.0 mm?

Short Answer

Expert verified

TypeIIerror()=0.1963

TypeIIerror()=0.1963

猞 We know that the degree of significance is referred to as the likelihood of Type I error, and it is obtained as a result =0.05.

Step by step solution

01

(a) Type of error

From the given data:

Null hypothesis: H0:=5.0

(The average length of rods generated by the vendor's manufacturer is 5.0 mm.)

Alternative hypothesis:

(The average length of rods generated by the vendor's manufacturer is 5.0 mm.)

The vendor supplies:

The significance level:

The test statistic z is given by:

z=x-sn

The resultant output are as follows:

One sample Z

Testofmu=5vs<5

The assumed standard deviation = 0.01

N Mean SE Mean95% Upper bound Z P
100 4.99750 0.00100 4.99914 -2.50 0.006

From the above result, we have

z-statistic=-2.50andp-value=0.006

The p-value is smaller than the level of significance, in this case, and we must reject the null hypothesis as well as declare that there is adequate evidence to back up the assertion that the mean lengths of their odds created by the vendor's manufacturing technique are actually 5.0mm.

We calculate the probability that the vendee's test reject to fail the null hypothesis where it is genuine, and it can be as follows:

The sample means as follows:

=x-sn-z0.05=x-5.00.001100-1.645=x(-1.6450.001)+5.0=x4.998

Based on the conclusions obtained in the preceding section, the chance that the vendee's test will reject the null hypothesis when it is true is classified as a type I mistake because it indicates that reject the null hypothesis when it is true =5.0

We know that the level of significance is referred to as the chance of Type I error, and it is calculated as =5.0

The probability of rejecting the null hypothesis it is actual:

Type-II error ()

P(AcceptingH0H1istrue)=P(x4.9984=4.9975=Px-/n4.9984-4.99750.001=P(z0.855)(NORMDIST(z,cumulative))=1-0.8037Typellerror()=0.1963

:
02

(b) Reject the null hypothesis

Based on the conclusions obtained in the preceding section, the chance that the vendee's test will reject the null hypothesis when it is true is classified as a type I mistake =5.0because it indicates that reject the null hypothesis when it is correct. We know that the degree of significance is referred to as the likelihood of Type I error, which is obtained as a result =0.05.

03

(c) The specified mean rod length of 5.0 mm

Here, we need to find out the power of the test to detect a departure of 0.0025 mm below the specified mean rod length of 5.0 mm is given by:

From part (a), we know the value as 0.1963.

Power of the test (1- ):

1-=1-0.19621-=0.8037

Therefore, the power of the test value is 0.8037

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Most popular questions from this chapter

Factors that inhibit learning in marketing. What factors inhibit the learning process in the classroom? To answer this question, researchers at Murray State University surveyed 40 students from a senior-level marketing class (Marketing Education Review). Each student was given a list of factors and asked to rate the extent to which each factor inhibited the learning process in courses offered in their department. A 7-point rating scale was used, where 1 = 鈥渘ot at all鈥 and 7 = 鈥渢o a great extent.鈥 The factor with the highest rating was instructor related: 鈥淧rofessors who place too much emphasis on a single right answer rather than overall thinking and creative ideas.鈥 Summary statistics for the student ratings of this factor are\(\overline x = 4.70\),\(s = 1.62\)

a. Conduct a test to determine if the true mean rating for this instructor-related factor exceeds 4. Use\(\alpha = 0.05\).Interpret the test results.

b. Examine the results of the study from a practical view, and then discuss why 鈥渟tatistically significant鈥 does not always imply 鈥減ractically significant.鈥

c. Because the variable of interest, rating, is measured on a 7-point scale, it is unlikely that the population of ratings will be normally distributed. Consequently, some analysts may perceive the test, part a, to be invalid and search for alternative methods of analysis. Defend or refute this argument

Consider the test \({H_0}:\mu = 70\) versus \({H_a}:\mu \ne 70\) using a large sample of size n = 400. Assume\(\sigma = 20\).

a. Describe the sampling distribution of\(\bar x\).

b. Find the value of the test statistic if\(\bar x = 72.5\).

c. Refer to part b. Find the p-value of the test.

d. Find the rejection region of the test for\(\alpha = 0.01\).

e. Refer to parts c and d. Use the p-value approach to

make the appropriate conclusion.

f. Repeat part e, but use the rejection region approach.

g. Do the conclusions, parts e and f, agree?

For the binomial sample sizes and null hypothesized values of p in each part, determine whether the sample size is large enough to use the normal approximation methodology presented in this section to conduct a test of the null hypothesis \({H_0}:p = {p_0}\)

  1. \(n = 900,\;{p_0} = .975\)

Which element of a test of hypothesis is used to decide whether to reject the null hypothesis in favor of the alternative hypothesis?

a.Consider testing H0: m=80. Under what conditions should you use the t-distribution to conduct the test?

b.In what ways are the distributions of the z-statistic and t-test statistic alike? How do they differ?

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