A company manufacturing computer chips finds that 5% of all chips manufactured are defective. Management is concerned that employee inattention is partially responsible for the high defect rate. In an effort to decrease the percentage of defective chips, management decides to offer incentives to employees who have lower defect rates on their shifts. The incentive program is instituted for one month. If successful, the company will continue with the incentive program.a. Write the company's null and alternative hypotheses. Make sure to include the correct parameter, sign and number.Ho:  H1:  b. In this context describe a Type I error and the impact such an error would have on the company.Management thinks the incentive program was effective, when in fact it did not lower the defective rate from 5%.Management thinks the incentive program did not work, when in fact it did lower the defective rate from 5%.c. In this context describe a Type II error and the impact such an error would have on the company.Management thinks the incentive program was effective, when in fact it did not lower the defective rate from 5%.Management thinks the incentive program did not work, when in fact it did lower the defective rate from 5%.d. Based on the data they collected during the trial program, management found that a 95% confidence interval for the percentage of defective chips was (4%, 6%). What conclusion should management reach about the new incentive program? Explain.Since 5% is not in the interval, we have enough evidence that the defect rate has been decreased.Since 5% is in the interval, we do not have evidence that the defect rate has been decreased.e. Describe to management an advantage of decreasing the significance level.Lowers the probability of a Type I errorLowers the probability of a Type II errorf. Describe to management a disadvantage of decreasing the significance level.Raises the probability of a Type I errorRaises the probability of a Type II errorg. Management decided to extend the incentive program so that the decision can be made on three months of data instead. Will the power increase, decrease, or remain the same with a larger sample size, assuming they use the same level of significance?The power willIncreaseDecreaseStay the same

A manufacturer of electronic components claims that their production process produces resistors that are 90% defect-free.However, a customer suspects that the actual proportion of defective resistors may be much higher than that.To investigate this, a customer takes a random sample of 20 resistors from the manufacturer's production line and inspects them for defects.If three or more resistors are defective, the customer will not purchase the electronic components.Define the Null and Alternative Hypothesis;Define the Critical Value and Critical Region;Find the probability of committing a type I error assuming that manufacturer claim is True.Find the probability of committing a type II error for the alternative proportion of defected items of p=0.2.Hint: Use the Statistical Table A1 for the Binomial Probability Sums.

Consider the null hypothesis that a process produces no more than the maximum permissible rate of defective items. In this situation, what would be the type-II error?The process does not produce more than the maximum permissible rate of defective items when it actually does not.The process produces more than the maximum permissible rate of defective items when it actually does.The process produces more than the maximum permissible rate of defective items, even though it does not.The process does not produce more than the maximum permissible rate of defective items, even though it actually does.

Suppose you are testing your friend to see whether she can tell the difference between the name brandand generic peanut butter. You give her 40 samples selected randomly, half from the name brand andhalf from the generic brand. The null hypothesis is that she is just guessing and should get about halfright. Explain what type I error would be in this case.A) Type I error would be saying that your friend cannot tell the difference between the two kinds ofpeanut butter, when she really can.B) Type I error would be saying that your friend can tell the difference between the two kinds of peanutbutter, when she really can.C) Type I error would be saying that your friend can tell the difference between the two kinds of peanutbutter, when she really cannot.D) Type I error would be saying that your friend cannot tell the difference between the two kinds ofpeanut butter, when she really cannot

Potential errors relative to Hypothesis testing are referred to as Type I error and Type II error. Group of answer choicesTrueFalse

The error of rejecting a true null hypothesis is ____.Group of answer choicesa Type I errora Type II erroreither type I and Type II error, depending on the situationcommitted when not enough information is available