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A Toaster Manufacturer Receives Large Shipments of Thermal Switches from a Supplier

Question 197

Essay

A toaster manufacturer receives large shipments of thermal switches from a supplier. A sample from each shipment is selected and tested. The manufacturer is willing to send the shipment back if the proportion of defective switches is more than 5%. Otherwise, the shipment will be kept.
State the appropriate null and alternative hypotheses to be tested by the manufacturer.
H0: ______________
H1: ______________
Describe the Type I error.
________________________________________________________
Describe the Type II error for this problem.
________________________________________________________
From the manufacturer's point of view, which error would be the more serious?
______________
Justify your answer.
________________________________________________________
From the supplier's point of view, which error would be the more serious?
______________
Justify your answer.
________________________________________________________

Correct Answer:

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p = 0.05; p > 0.05; A Type I error would...

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