Reference no: EM131650172

Question: TV safety revisited. The manufacturer of the metal TV stands in Exercise is thinking of revising its safety test.

a) If the company's lawyers are worried about being sued for selling an unsafe product, should they increase or decrease the value of ? Explain.

b) In this context, what is meant by the power of the test?

c) If the company wants to increase the power of the test, what options does it have? Explain the advantages and disadvantages of each option.

Exercise: TV safety. The manufacturer of a metal stand for home TV sets must be sure that its product will not fail under the weight of the TV. Since some larger sets weigh nearly 300 pounds, the company's safety inspectors have set a standard of ensuring that the stands can support an average of over 500 pounds. Their inspectors regularly subject a random sample of the stands to increasing weight until they fail. They test the hypothesis H0: µ = 500 against HA: µ > 500 using the level of significance . If the sample of stands fail to pass this safety test, the inspectors will not certify the product for sale to the general public.

a) Is this an upper-tail or lower-tail test? In the context of the problem, why do you think this is important?

b) Explain what will happen if the inspectors commit a Type I error.

c) Explain what will happen if the inspectors commit a Type II error.