Refer to Exercises 85 and 87. a. Explain one disadvantage of using = 0.10 instead of
Question:
Refer to Exercises 85 and 87.
a. Explain one disadvantage of using α = 0.10 instead of α = 0.05 when performing the test.
b. Explain one disadvantage of taking a random sample of 500 potatoes instead of 250 potatoes from the shipment.
Exercises 85 and 87.
A company that makes potato chips requires each shipment of potatoes to meet certain quality standards. If the company finds convincing evidence that more than 8% of the potatoes in the shipment have “blemishes,” the truck will be sent back to the supplier to get another load of potatoes. Otherwise, the entire truckload will be used to make potato chips. To make the decision, a supervisor will inspect a random sample of potatoes from the shipment. He will then perform a test of H0: p = 0.08 versus Ha: p > 0.08 , where p is the true proportion of potatoes with blemishes in a given truckload. The power of the test to detect that p = 0.11, based on a random sample of 500 potatoes and significance level α = 0.05, is 0.764. Interpret this value.
Step by Step Answer:
The disadvantage of using 010 instead of 005 is that by using 010 there is a large chance that ...View the full answer
