Packing Line a Packing Company Investigates Hiring a National Training

Essay

Packing Line A packing company investigates hiring a national training consultant to
improve productivity on their packing line. The consultant is very expensive, so they will
only hire him if they are very sure that productivity will rise. The company hires the
consultant for a one-week trial to work with 18 employees before making a final decision
about the training program. The training program will be implemented if the average units
packed per employee increases by more than 10 cases per day. The company manager will
test a hypothesis using α = 0.05.
a. Write appropriate hypotheses (in words and in symbols).
b. In this context, which do you consider to be more serious - a Type I or a Type II error?
Explain briefly.
c. After this trial produced inconclusive results the manager decided to test the training
program again with another group of employees. Describe two changes he could make in
the trial to increase the power of the test, and explain the disadvantages of each.