#### mathjunkie1990

##### New member
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
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