1. Thirty years ago, the mean number of rides that were disabled(broken) for more than two
hours at Disneyland was 10.2 per month. The current CEO, BobIger, believes that number has
gone down and randomly selects 11 months from the past threeyears and checks on the number
of disabled rides. If the mean has decreased, he will give themembers of the maintenance staff a
$50K bonus this year. If not, they will all be immediatelyfired.
14
10
5
6
8
10
10
8
9
9
7
a. At the 10% significance level, do the data provide evidencethat the mean number of disabled
rides per month has decreased?
b. In the context of this problem, describe Type I and Type IIerrors and their consequences.
Which one, in your opinion, is more severe?
Type I:
Type II:
