Please Help I am stuck

mathjunkie1990

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Joined
Nov 14, 2009
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7
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
 

mathjunkie1990

New member
Joined
Nov 14, 2009
Messages
7
so far I have
a)ho=.4 ha< or = to .4
b) and c) i understand the definition of the two types of errors but not how it to apply it to the problem
d) I know pwoer= 1- Beta but i dont know how it applies
and
e)increasing the sample size effects the type 2 error but does it make it higher or lower?

hopefully I am on the right track but if someone can help me fill in the blanks it would be much appreciated
 
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