Question

Consider the hospital from problem 4 of the homework that is using a statistical test to decide whether or not to accept future shipments of syringes from a supplier. The two errors the can make are to reject shipments that are actually acceptable and to accept shipments that do not meet the requirements. The hospital has decided that the error of accepting shipments that do not meet the requirements is substantially more important. They would like to ensure that they do not make this error even if that means increasing the chance that they reject acceptable shipments. When selecting their alpha (choosing between 0.01, 0.05 and 0.10) which alpha level provides the highest protection against this type of error?

a) alpha-0.01
b) alpha-o.05
c) alpha-0.10

Answer 1

The correct option is a

Explanation:

Gnerally assuming that

The null hypothesis is that the syringes from a supplier does not meet the requirement

and

The alternative hypothesis is that the syringes from a supplier meets the requirement

Now in order not to commit type I error which is wrongfully rejecting the null hypothesis then the level of significance need to be lower than the p-value (this is obtained from the z-table for any given z-score ) hence the suitable level of significance to achieve the hospitals aim is alpha-0.01