professor makes a Type I error, In this context, explain what would happen if th

Question

professor makes a Type I error, In this context, explain what would happen if the professor makes a Type II error. What is meant by the power of this test? Ads A company is willing to renew its advertising contract with a local radio station only if the station can prove that more than 20% of the residents of the city have heard the ad and recognize the company's product. The radio station conducts a random phone survey of 400 people. What are the hypotheses? The station plans to conduct this test using a 10% level of significance, but the company wants the significance level lowered to 5%. Why? What is meant by the power of this test? For which level of significance will the power of this test be higher? Why? They finally agree to use a = 0.05, but the company proposes that the station call 600 people instead of

Explanation / Answer

a.) Ho : P =0.2. H1 : P > 0.2

B.) The higher the level of significance higer will be the probability of error.

C.) Power of the test is the probability of making the correct decision.

D.) For 10% level of significance the power will be more. The error margin will be more for 10% so there is higher chance of the null hypothesis to be rejected

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