1. Type I and II Errors
Think of a major decision you have made. What factors helped you to make that decision? How can you relate a Type I or Type II error to your decision? What were the ramifications of the decision?
For example, in 1995, I was thinking about moving from Florida to Arizona.
HO: Move to Arizona
H1: Stay in Florida
A type I error would be to stay in Florida when I should have moved to Arizona.
A type II error would be to move to Arizona when I should have stayed in Florida.
If I had stayed in Florida, I would have probably not had some of the job and educational opportunities that I have here in Arizona. However, my increase in home value in Florida would have been much higher than in Arizona (especially in this economy).
2. Hypothesis Testing
Explain how you could set up a 5 step hypothesis test for one of the following
Do Radar Detectors increase speeding?
Do People really have ESP?
Does Packaging of a product increase sales?
Does duct tape work better than Band-Aids?
Do left hander's have a shorter lifespan?
Do more men suffer from holiday depression?
Do nonsmokers recover from injury faster than smokers?
Is one route to work faster than another?
3. Labels
Have you ever thought, "Am I getting the amount that I paid for ?", or for that matter, "Am I getting what I paid for?". Have you ever bought something that you thought was a good deal, only to later realize that you should have thought more carefully? As consumers, we all purchase many bottled, boxed, canned or packaged products. Talk about how you may have been tricked by manufacturers labels, and how statistics (and even hypothesis testing) can allow us to become better consumers.