Question
In: Statistics and Probability
Occasionally, warning flares of the type contained in most automobile emergency kits fail to ignite. A...
Occasionally, warning flares of the type contained in most automobile emergency kits fail to ignite. A consumer advocacy group is to investigate a claim against a manufacturer of flares brought by a person who claims that the proportion of defectives is much higher than the value of .1 claimed by the manufacturer. A large number of flares will be tested and the results used to decide between Ho: p = .1 versus Ha : p > .1, where p represents the true proportion of defectives for flares made by this manufacturer. If Ho is rejected, charges of false advertising will be filed against the manufacturer. a. Explain why the alternative hypothesis was chosen to be Ha: p > .1. b. In this context, describe type I and type II errors and discuss the consequences of each.
Solutions
Expert Solution
Hypothesis Testing:
Hypothesis testing is an act in statistics whereby an analyst tests an assumption regarding a population parameter. The methodology employed by the analyst depends on the nature of the data used and the reason for the analysis. Hypothesis testing is used to assess the plausibility of a hypothesis by using sample data.
orchestra answered 2 years agoRelated Solutions
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PLease need a unique answer with proper finance terminology.
THank you!
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