Question
Suppose a pickup and delivery company states that their packages arrive within two days or less on average. You want to find out whether the
Suppose a pickup and delivery company states that their packages arrive within two days or less on average. You want to find out whether the actual average delivery time is longer than this. You conduct a hypothesis test.
(a) Set up the null and alternative hypotheses.
(b) Suppose you conclude wrongly that the company's statement about average delivery time is within two days. What type of error is being committed and what is the impact of that error?
(c) Suppose you conclude wrongly that the delivery company's average time to delivery is in fact longer than two days. What type of error did you commit and what is the impact of this error?
(d) Which error is worse from the company's standpoint, a Type I or a Type II error? Why?
(e) Which error is worse from a consumer standpoint, a Type I or a Type II error? Why?
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