Posted by Shon on Monday, September 13, 2010 at 1:16pm.
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?
(c) Which is more to be feared, and by whom? (d) If the hotel decides to reduce รข risk, what would
be the consequences? Who would be affected?

statistics  MathGuru, Monday, September 13, 2010 at 10:02pm
I'll give you some background on Type I and Type II errors and let you take it from there.
Type I errors result when you reject the null and it's true. Type II errors result when you accept the null and it's false. You can reduce Type I errors by setting the alpha at a lower level, for example, from .05 to .01. However, when you do that, you increase the probability of making a Type II error. You would have to determine if the hotel would be more concerned about Type I or Type II errors.
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