Decision rule with smallest maximum opportunity loss

Assignment Help Basic Statistics

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

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