SOLUTION: A hotel installs smoke detectors with adjustable sensitivity in all public guest rooms. (a) State the null and alternative hypotheses. (b) Define Type I and II error. What ar

Question 332023: A hotel installs smoke detectors with adjustable sensitivity in all public guest rooms.
(a) State the null and alternative hypotheses.
(b) Define Type I and II error.
What are the consequences of each?
Answer by jrfrunner(365) (Show Source): You can put this solution on YOUR website!
You should set up the hypothesis such that type I errors are worse than type II errors
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Ho: Not all public guest rooms have smoke detectors with adjustable sensitivity
Ha: All public guest rooms have smoke detectors with adjustable sensitivity
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Type I error:
Probability(Reject Ho / when Ho is true)
which means you conclude that all guest rooms have the detectors when in fact they all dont.
Consequences: You assume a level of safety that does not exist, which could lead to fire damage, injury and lawsuits.
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Type II error:
Probability(Accepting Ho / when Ho is false)
which means you conclude that NOT all guest rooms have the detectors when in fact they all do.
Consequences: You incur extra costs,by buying more detectors than you need
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