Purchase Solution

Type 1 error, Type II error, Consumers Risk and Producers Risk

Not what you're looking for?

Ask Custom Question

A manufacturer of handheld calculators receives very large shipments of printed circuits from a supplier. It is too costly and time-consuming to inspect all incoming circuits, so when each shipment arrives, a sample is then used to test H0: pi = 0.05 versus HA: pi > 0.05, where is the true proportion of defectives in the shipment. If the null hypothesis is not rejected, the shipment is accepted, and the circuits are used in the production of the calculators. If the null hypothesis is rejected, the entire shipment is returned to the supplier due to inferior quality. (A shipment is defined to be of inferior quality if it contains more than 5% defectives.)

a) In this context, define type I and type II errors.
b) From the calculator manufacturer?s point of view, which type of error would be considered more serious and explain why?
c) From the printed circuit supplier?s point of view, which type of error would be considered more serious and explain why?

Purchase this Solution
Solution Summary

The solution gives definition and interpretations of type 1 error type II error, consumers risk and producers risk.

Solution Preview

a) In this context, define type I and type II errors.
Type I error, also known as an "error of the first kind", an ? error, or a "false positive": the error of rejecting a null hypothesis when it is actually true.

Type II error, also known as an "error of the second kind", a ? error, or a "false ...

Purchase this Solution
Free BrainMass Quizzes
Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

View More Free Quizzes
Related BrainMass Solutions

  • Power and type 2 error

    360221 Power and type 2 error Explain whether the following statements are correct. A type II error is the error of rejecting the null hypotheis when it is true. The type II error is denoted by (1-beta).

  • Statistics - Alpha and Beta Risk - Risk Management

    So shortly, Beta risk = Probability of Type II error = Probability (accepting H0 when it is actually false) While  and (1 - ) are known, set by the researcher prior to doing the test,  and (1 - ) can not be determined without knowing the actual

  • Type I and II error

    Ans: you have made a type II error ( this is correct) 3. What is the relationship between the alpha level, the size of the critical region and the risk of type I error?

  • Salmonella in Chicken: Type I and Type II errors

    With a type I error, you might create a health scare and hurt the sales of chicken producers who were actually meeting the USDA limits.

  • Determining Type I Error

    A type I error occurs when one rejects the null hypothesis when it is true, and a type II error occurs when one rejects the alternative hypothesis when the alternative hypothesis is true. How will you know when you've had a Type I error?

  • Type I or Type II errors?

    More information of the type I and type II error 1. TYPE I Error For example, Type I error, also known as an "error of the first kind", an error, or a "false positive": the error of rejecting a null hypothesis when it is actually true.

  • Research question

    Consider the risk posed by your research question. What level of significance should your choose? Justify your choice in terms of the probability of making a Type I error and the probability of making a Type II error.

  • Question about Type I and Type II Error

    (a) Define Type I and Type II error. The null hypothesis is that the patient's cholesterol is low and doesn't need to be treated.

  • Inferences based on Single Samples

    For the test conducted in a, which type error is more serious from the company's point of view-Type I or Type II error? (producer's risk) see attachment pls.

View More Related Solutions