3a wine producer claims that the proportion of its, Ask an Expert

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3A wine producer claims that the proportion of its customers who cannot distinguish its product from frozen grape juice is at most 0.09. Producers make decisions to test this null hypothesis against the alternative that the true proportion is more than 0.09. The decision rule accepts to decline the null hypothesis if the sample proportions of people who cannot distinguish between these two flavors exceed 0.14.

a) If a random sample of 400 clients is elected, what is the probability of Type I error using this decision rule?

b) Suppose that the true proportion of customers who cannot distinguish between these flavors is 0.20. If a random sample of 100 clients is elected, what is the probability of a type II error?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9723688

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