Decision rule with smallest maximum opportunity loss

Reference no: EM1320891

Q1) Owner of Get-A-Away Travel has recently surveyed random sample of 210 customers to find out whether mean age of the agency's customers is over 30. Suitable hypotheses are H0: μ = 30, Ha: μ > 30. If he concludes mean age is over 30 when it is not, he makes __________ error. If he concludes mean age is not over 30 when it is, he makes __________ error.

a) Type I; Type I

b) Type II; Type II

c) Type I; Type II

d) Type II; Type I

Q2) Insurance company sets up statistical test with null hypothesis that average time for processing claim is 3 days, and alternative hypothesis that average time for processing a claim is greater than 3 days. After finishing the statistical test, it is concluded that average time exceeds 3 days. Though, it is finally learned that mean process time is really 3 days. What kind of error occurred in statistical test?

a) Type III error

b) No error occured in the statistical sense.

c) Type I error

d)Type II error

Q3) Decision rule which chooses alternative associated with smallest maximum opportunity loss is:

a) maximax decision rule.

b) maximin decision rule.

c) minimax regret decision rule.

d) minimin decision rule.

Reference no: EM1320891

Questions Cloud

Test the instructor claim at a 5% level of significance : Test the instructor's claim at a five percent level of significance. Write your conclusion?

Testing for single mean : Calculate table T t . Calculate Computed T c .

Compensation strategy : Please select a company of your choice and assess it compensation strategy based on the concepts you have learned in this class. As a final conclusion to this paper

One sample z test : Calculate p value? What is the critical value?

Decision rule with smallest maximum opportunity loss : Decision rule which chooses alternative associated with smallest maximum opportunity loss is?

Significant difference in average amount spent at two school : At a 5 percent level of significance, test to see if there is a significant difference in the average amount spent at the two schools. Write your conclusion?

Point estimate for average sales : What would be your best point estimate for average Sales in weeks for which Newspaper advertising were $1 million? What would be an appropriate interval estimate for this?

Category of decision rule contain maximax decision rule : Category of decision rule which contains maximax decision rule is?

Interpret the confidence interval in a single sentence : Interpret the confidence interval in a single sentence

User Account

All Pages