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PLEASE SHOW STEP BY STEP SOLUTIONS The label on a 3-quart container of orange ju

ID: 3149849 • Letter: P

Question

PLEASE SHOW STEP BY STEP SOLUTIONS

The label on a 3-quart container of orange juice states that the orange juice contains an average of 1 gram of fat or less. Answer the following questions for a hypothesis test that could be used to test the claim on the label.

a. Develop the appropriate null and alternative hypotheses.

b. What is the Type I error in this situation? What are the consequences of making this error?

c. What is the Type II error in this situation? What are the consequences of making this error?

Explanation / Answer

a)

Null Hypothsis : Average fat content in the orance juice is less or equal to 1 gram

Alternative hypothesis : Average fat content in the orance juice is greater than 1 gram

b) Type 1 error is the probability that accepting the fact that the average fat content is greater than 1 gram based on sample when true average fat content in the orange juice is less than or equal to 1 gram..

The consequence of making this error will be against the claim of the company and it will affect the reputation of the company and a good company will be marked as bad.

c) Type 2 error is the probability that accepting the fact that the average fat content is less than or equal to 1 gram based on sample when true average fat content in the orange juice is greater than 1 gram..

This error will judge a bad company as a good company and as a result the a bad company will arise in market and cause harm to consumers.

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