mathjunkie1990

11-14-2009, 09:36 PM

8. A company wants to renew a newspaper ad, but is leery of the cost and benefit. They say they will buy the new ad if the newspaper can prove that at least 40% of the town’s residents have seen the previous ad and recognize the company’s product. The newspaper conducts a random phone survey of 500 people.

a. State the hypotheses

b. Explain what would happen if a Type I error is made.

c. Explain what would happen if a Type II error is made.

d. What is meant by the power of this test?

e. If they agree on , but the company suggests that the station call 800 people instead of the 500 that was proposed, would this make the risk of Type II higher or lower? Explain

a. State the hypotheses

b. Explain what would happen if a Type I error is made.

c. Explain what would happen if a Type II error is made.

d. What is meant by the power of this test?

e. If they agree on , but the company suggests that the station call 800 people instead of the 500 that was proposed, would this make the risk of Type II higher or lower? Explain