Suppose Frances is a researcher at Beaded Gemsz, a company that makes beaded jew

Question

Suppose Frances is a researcher at Beaded Gemsz, a company that makes beaded jewelry. She wants to evaluate whether using better equipment during the current year has increased jewelry-making productivity. The company's reporting team esimal am averas dl ill ois per si frvious ycars. Frances conducts a one-sample z-test with a significance level of 0.05, acquiring daily unit yield data from each of the stores' databases for 45 randomly selected days of the year. She obtains a p-value of 0.03·The power of the test to detect a production increase of 12 units or more is 0.80. What is the probability that Frances concludes that the new equipment increases the average daily jewelry production when in fact the new equipment has no effect? Provide your answer in decimal form, precise to two decimal places.

Explanation / Answer

Type I and type II errors. ... In statistical hypothesis testing, a type I error is the incorrect rejection of a true null hypothesis (also known as a "false positive" finding), while a type II error is incorrectly retaining a false null hypothesis (also known as a "false negative" finding).

So,

Here null hypothesis is true but we have rejected that. So we are making type 1 error

Type 1 error is 0.05 (alpha)

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