Author Question: It is improper to combine manufacturing costs and overtime costs in the same objective function. ... (Read 92 times)

V@ndy87 · **on:** Jun 24, 2018

It is improper to combine manufacturing costs and overtime costs in the same objective function.
Indicate whether the statement is true or false

Question 2

A fast-food restaurant is considering a promotion that will offer customers to purchase a toy featuring a cartoon movie character. If more than 20 of the customers purchase the toy, the promotion will be profitable. A sample of 50 restaurants is used to test the promotion.
a. State the hypotheses associated with the restaurant's test.
b. Describe a Type I error for this situation.
c. Describe a Type II error for this situation.

perkiness · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

F

Answer to Question 2

a. H0: p .20
Ha: p > .20
b. A Type I error for this situation would be to incorrectly conclude that the promotion would be profitable.
c. A Type II error for this situation would be to conclude that the promotion would not be profitable when more than 20 of customers would purchase the toy.