Question

In: Statistics and Probability

The feasibility of constructing a profitable electricity producing windmill depends on the mean velocity of the...

The feasibility of constructing a profitable electricity producing windmill depends on the mean velocity of the wind. For a certain type of windmill, the mean would have to exceed 20 miles per hour to warrant its construction. The determination of a site's feasibility is a two-stage process. In the first stage, readings of the wind velocity are taken and the mean is calculated. The test is designed to answer the question, " is the site feasible?" In other words, is there sufficient evidence to conclude that the mean wind velocity exceeds 20 mph? If there is enough evidence, further testing is conducted. If there is not enough evidence, the site is removed from consideration. Discuss the consequences and potential costs of Type I and Type II errors.

Solutions

Expert Solution

Null Hypothesis H0: The site is feasible and the mean wind velocity exceeds 20 mph.

Alternative hypothesis Ha: The site is not feasible and the mean wind velocity is less than 20 mph

Type I error is rejection of true null hypothesis. Thus, Type I error, that we conclude that the site is not feasible, but in reality, the site is feasible.

The consequence is that the profitable electricity producing windmill will not be constructed. There would not be any financial cost, but the company may miss a feasible site which can be of great financial and business importance.

Type II error is fail to rejection of false null hypothesis. Thus, Type II error, that we could not find any evidence to claim that the site is not feasible, but in reality, the site is not feasible.

The consequence is that the further testing is conducted to determine the feasibility. There would huge financial loss for the company if the company again fails to find any evidence in the second round in favor of mean wind speed less than 20 miles per hour. The company then starts the construction of electricity producing windmill on non-feasible site.


Related Solutions

Find an expression for the average velocity in a smooth pipe if it depends on the...
Find an expression for the average velocity in a smooth pipe if it depends on the viscosity, the diameter, and the pressure gradient dp/dx.
How linear Velocity and acceleration, and angular velocity and acceleration depends upon the engine rotation angle?
How linear Velocity and acceleration, and angular velocity and acceleration depends upon the engine rotation angle?
The USA depends heavily on the burning of fossil fuels to provide the electricity we need...
The USA depends heavily on the burning of fossil fuels to provide the electricity we need many renewable resources are used to generate the electricity but this only accounts for 5.6% off all the electricity produced in the USA. Explain how you think we should generate electricity in the future. Your opinion should include: 1. What methods you think we should use. 2. An exploration of how they work including the energy transformations that are occurring. 3. The advantages and...
ABC Auto Corporation is evaluating the feasibility of producing a newly invented hybrid car. The new...
ABC Auto Corporation is evaluating the feasibility of producing a newly invented hybrid car. The new model will enable drivers to use both gas and electricity to fuel the car. It also has a lot of new build-in functions superior to other similar cars in the market. The company has already spent $0.5 million over the past 2 years in developing and testing this new car model. To make sure the car will hit the market successfully, ABC recently hired...
4- If the drag force on a smooth sphere depends on the velocity (V), sphere diameter...
4- If the drag force on a smooth sphere depends on the velocity (V), sphere diameter (D), viscosity (?), and density (?), use dimensional analysis to show the drag coefficient on the sphere is a function of the Reynolds number only. (15%) ?
1) Find the uncertainty in kinetic energy. Kinetic energy depends on mass and velocity according to...
1) Find the uncertainty in kinetic energy. Kinetic energy depends on mass and velocity according to this function E(m,v) = 1/2 m v2. Your measured mass and velocity have the following uncertainties     2.58 kg and   0.36 m/s. What is is the uncertainty in energy,  , if the measured mass, m = 4.75 kg and the measured velocity, v = -3.76 m/s? Units are not needed in your answer 2)Find the uncertainty in kinetic energy. Kinetic energy depends on mass and velocity according to...
Should you generate electricity with your own personal wind turbine? That depends on whether you have...
Should you generate electricity with your own personal wind turbine? That depends on whether you have the right amount of wind on your site. For a personal wind turbine to work properly, your site should have an annual average wind speed of at least 10 miles per hour, according to the Wind Energy Association. Lower winds do not provide enough energy. One candidate site was monitored last year, with wind speeds recorded every 8 hours. A total of 49 readings...
Define the velocity of money. What does it mean if the percent change in velocity is...
Define the velocity of money. What does it mean if the percent change in velocity is negative? Give a real-life example of how this could be possible? What central banking nightmare can occur if we see the percent change in velocity of money turn negative and the Fed does not react?
What is the difference between the root-mean-squared velocity (????) and the average velocity (?̅) of gas...
What is the difference between the root-mean-squared velocity (????) and the average velocity (?̅) of gas particles?
Just because a​ project's payback period is relatively long​ doesn't mean it is not profitable in...
Just because a​ project's payback period is relatively long​ doesn't mean it is not profitable in the long run. Consider an investment in LED lights with a price tag of $226,000. The estimated annual savings in electricity and routine maintenance is $40,900 and the life of the LED lights is 21 years. Assume that the payback period of three years or less is desired by the investor. a. What is the simple payback period for the​ lights? (I already know...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT