Question

Scenario 3 A company manufacturing computer chips finds that 8% of all chips manufactured are defective. Management is concerned that employee inattention is partially responsible for the high defect rate. In an effort to decrease the percentage of defective chips, management decides to offer incentives to employees who have lower defect rates on their shifts. The incentive program is instituted for one month. If successful, the company will continue with the incentive program. Questions 11 to 16 pertain to Scenario 3. Question 11 (1 point) Saved What is the company's null and alternative hypotheses? Question 11 options: a) Ho: p = .08 HA: p = .92 b) Ho: p = .08 HA: p < .08 c) Ho: p > .92 HA: p < ..08 d) Ho: p < .92 HA: p = .08 Question 12 (1 point) Saved Which of the following would describe a Type I error? Question 12 options: a) Deciding that the percentage of defective chips has increased b) Deciding that the percentage of defective chips has not changed c) Deciding that the percentage of defective chips has not decreased when in fact it has d) Deciding that the percentage of defective chips has decreased when it has not Question 13 (1 point) Saved Which of the following would describe a Type II error? Question 13 options: a) Deciding that the percentage of defective chips has increased b) Deciding that the percentage of defective chips has not changed c) Deciding that the percentage of defective chips has not decreased when in fact it has d) Deciding that the percentage of defective chips has decreased when it has not Question 14 (1 point) Saved Based on the data they collected during the trial program, management found that a 95% confidence interval for the percentage of defective chips was (5.0%, 7.0%). What conclusion should management reach about the new incentive program? Question 14 options: a) The data is inconclusive and does not provide any convincing evidence b) The data provides convincing evidence that the incentive program lowers the defect rate c) The data provides convincing evidence that the incentive program was not effective and did not change the defect rate d) The data provides convincing evidence that the incentive program actually increases the defect rate Question 15 (1 point) Saved What level of significance did management use when they found that a 95% confidence interval for the percentage of defective chips was (5.0%, 7.0%)? Question 15 options: a) 5% b) 95% c) 2.5% d) 97.5% Question 16 (1 point) Saved Management decided to extend the incentive program so that the decision can be made on three months of data instead. Will the power of the program increase, decrease, or remain the same? Question 16 options: a) The power would increase because of the larger sample size b) The power would decrease because of the larger sample size c) The power would increase because of the large population d) The power would remain the same since the population does not change

Answer 1

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Answers

11)

b) Ho: p = .08 HA: p < .08

Reason : proportion of defective is taken as 0.08. Since proportion of defective = 8/100

12)

d) Deciding that the percentage of defective chips has decreased when it has not

Reason : Type 1 error is rejecting Null hypothesis but infact null hypothesis is true

13)

c) Deciding that the percentage of defective chips has not decreased when in fact it has

Reason : type 2 error is Don't rejecting Null hypothesis but infact Alternative hypothesis is true

14)

b) The data provides convincing evidence that the incentive program lowers the defect rate

Reason : Since 8% defect is not included in Confidence interval

15)

a) 5%

Reason : 100 % - Confidence level

16)

a) The power would increase because of the larger sample size

Reason : power increases if sample size increases.. power also increases if effect size increases.. power also increases if significance level increases