Overview
Question 1
For each of the following sets of hypotheses, determine whether committing a Type I error or a Type II error has greater real-world consequences. Explain your decision.
Part A
Imagine that the San Francisco Giants hold a book donation promotion for one of their games where every individual who brings a used book to the stadium is allowed free entry.
𝐻0: The number of individuals who wish attend the game will be no more than the capacity of the stadium.
𝐻𝐴: The number of individuals who wish to attend the game will exceed the capacity of the stadium.
Part B 𝐻0: A new operating system is no more effective for Carbon Health to use on the computers at
its clinics than the old operating system.
𝐻𝐴: A new operating system is more effective for Carbon Health to use on the computers at its clinics than the old operating system.
Part C 𝐻0: The results of the 2020 United States presidential election were legitimate (the right candidate
won).
𝐻𝐴: The results of the 2020 United States presidential election were fraudulent (the wrong can- didate won).
Question 2
A food safety inspector is called upon to investigate a restaurant with a few customer reports of poor sanitation practices. The food safety inspector uses a hypothesis testing framework to evaluate whether regulations are not being met. If he decides the restaurant is in gross violation, its license to serve food will be revoked.
Part A
Write the hypotheses in words.
Part B
What is a Type 1 Error in this context?
Part C
What is a Type 2 Error in this context?
Part D
Which error is more problematic for the restaurant owner? Why?
Part E
Which error is more problematic for the diners? Why?
Part F
As a diner, would you prefer that the food safety inspector requires strong evidence or very strong evidence of health concerns before revoking a restaurant’s license? Explain your reasoning.