In Exercise 11.39, we tested to determine whether the installation of safety equipment was effective in a

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In Exercise 11.39, we tested to determine whether the installation of safety equipment was effective in a = .05, s = 50 H1: m 7 400 H0: m = 400 a = .05, s = 200 H1: m Z 1,000 H0: m = 1,000 H1: m 7 300 H0: m = 300 H1: m 6 200 H0: m = 200 reducing person-hours lost to industrial accidents.

The null and alternative hypotheses were with   6,   .10, n  50, and   the mean percentage change. The test failed to indicate that the new safety equipment is effective. The manager is concerned that the test was not sensitive enough to detect small but important changes. In particular, he worries that if the true reduction in time lost to accidents is actually 2% (i.e.,   2), then the firm may miss the opportunity to install very effective equipment. Find the probability that the test with

  6,   .10, and n  50 will fail to conclude that such equipment is effective. Discuss ways to decrease this probability.

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Statistics For Management And Economics

ISBN: 9781133420774

9th Edition

Authors: Gerald Keller, Kenneth C Louden

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