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Restaurant power problems Refer to Exercises 86 and 88

a. Explain one disadvantage of using =0.10 instead of =0.05 when

performing the test.

b. Explain one disadvantage of taking a random sample of 50 people instead of 30 people.

Short Answer

Expert verified

Part (a) There is the most likely to have a type I error.

Part (b) There is more time consuming and costly to collect the data.

Step by step solution

01

Part (a) Step 1: Given information

=0.05H0:=$85,000>$85,000=$86,000
02

Part (a) Step 2: Explanation

Type I error: Reject the null hypothesis H0, once the null hypothesis H0is true.

Showing the probability of a type I error.

If you increase =0.05to=0.10 the likelihood of making a type I error increases, and you're more likely to make one, which is a negative.

03

Part (b) Step 1: Explanation

If the sample size is increased from 30to 50persons, collecting data for the 50people will take longer and cost more money than collecting data for the 30people (as there are about twice as many potatoes about which we need to gather information.).

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Most popular questions from this chapter

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Awful accidents Slow response times by paramedics, firefighters, and policemen can have serious consequences for accident victims. In the case of life-threatening injuries, victims generally need medical attention within 8minutes of the accident. Several cities have begun to monitor emergency response times. In one such city, emergency personnel took more than 8minutes to arrive on 22%of all calls involving life-threatening injuries last year. The city manager shares this information and encourages these first responders to 鈥渄o better.鈥 After 6months, the city manager selects an SRS of 400 calls involving life- threatening injuries and examines the response times. She then performs a test at the =0.05level of H0: p=0.22versus Ha:p<0.22, where pis the true proportion of calls involving life-threatening injuries during this 6-month period for which emergency personnel took more than 8minutes to arrive.

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The reason we use t procedures instead of z procedures when carrying out a test about a population mean is that

a. z requires that the sample size be large.

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d. z requires that the population distribution be Normal.

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