Fowle Marketing Research, Inc., bases charges to a client on the assumption that telephone surveys can be
Question:
Fowle Marketing Research, Inc., bases charges to a client on the assumption that telephone surveys can be completed within 15 minutes or less. If more time is required, a premium rate is charged. With a sample of 35 surveys, a population standard deviation of 4 minutes, and a level of significance of .01, the sample mean will be used to test the null hypothesis H0: μ 15.
a. What is your interpretation of the Type II error for this problem? What is its impact on the firm?
b. What is the probability of making a Type II error when the actual mean time is
μ 17 minutes?
c. What is the probability of making a Type II error when the actual mean time is
μ 18 minutes?
d. Sketch the general shape of the power curve for this test.
Step by Step Answer:
Statistics For Business And Economics
ISBN: 9780324783247
11th Edition
Authors: Thomas A. Williams, Dennis J. Sweeney, David R. Anderson