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Assume that the mean height of people in the East is known to be 67 in. Suppose

ID: 3245123 • Letter: A

Question

Assume that the mean height of people in the East is known to be 67 in. Suppose a coat manufacturer in the East wants to open an outlet in the West, and that he has reason to believe that people in the West are, on the average, taller. If so, he must produce coats that are somewhat longer. Suppose that this requires an extensive and expensive retooling of his machinery. Suppose also that this hypothesis concerning relative height is tested in terms of a random sample of people in the West. Discuss the consequences of a Type I and Type 2 error.

Explanation / Answer

Answer:

Assume that the mean height of people in the East is known to be 67 in. Suppose a coat manufacturer in the East wants to open an outlet in the West, and that he has reason to believe that people in the West are, on the average, taller. If so, he must produce coats that are somewhat longer. Suppose that this requires an extensive and expensive retooling of his machinery. Suppose also that this hypothesis concerning relative height is tested in terms of a random sample of people in the West. Discuss the consequences of a Type I and Type 2 error.

Type I : Actual true height in west is 67 in and he wrongly rejects the null hypothesis of 67 in height.

Consequence: He unnecessarily spent for retooling of his machinery

Type 2 error: Actual true height in west is taller than 67 in and he fail to rejects null hypothesis of 67 in height.

Consequence: He unnecessarily produce shorter coats for the west and may not able to sell in West.

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