A Toaster Manufacturer Receives Large Shipments of Thermal Switches from a Supplier

Essay

A toaster manufacturer receives large shipments of thermal switches from a supplier. A sample from each shipment is selected and tested. The manufacturer is willing to send the shipment back if the proportion of defective switches is more than 5%. Otherwise, the shipment will be kept.
State the appropriate null and alternative hypotheses to be tested by the manufacturer.
H₀: ______________
H₁: ______________
Describe the Type I error.
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Describe the Type II error for this problem.
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From the manufacturer's point of view, which error would be the more serious?
______________
Justify your answer.
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From the supplier's point of view, which error would be the more serious?
______________
Justify your answer.
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