Production. Consider again the task of the quality control inspectors in Exercise 34. a) In this context,

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Production. Consider again the task of the quality control inspectors in Exercise 34.

a) In this context, what is meant by the power of the test the inspectors conduct?

b) They are currently testing 5 items each hour. Someone has proposed that they test 10 instead. What are the advantages and disadvantages of such a change?

c) Their test currently uses a 5% level of significance.

What are the advantages and disadvantages of changing to an alpha level of 1%?

d) Suppose that, as a day passes, one of the machines on the assembly line produces more and more items that are defective. How will this affect the power of the test?

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Business Statistics

ISBN: 9781292269313

4th Global Edition

Authors: Norean Sharpe, Richard De Veaux, Paul Velleman

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