1. In random sample of 105 shoppers at the Lafayette Best Buy taken over a one week period, 59 said they were there “showrooming;” that is, using the Best Buy to check out products that they intended to buy online. We wish to use a 1-sided Test to test at α = 0.1 the hypothesis whether 50% of Lafayette Best Buy shoppers are showroomers.
a. Write the null and alternative hypotheses of this test.
b. Compute the p-value of this test. (Use Minitab.)
c. State the conclusion of the test in the terms of the sampling problem.
2. A farmer is considering a new variety of wheat. Heʼll plant it if it has higher yield. He conducts an experiment with the null hypothesis that the new variety has the same yield as his old variety, and the alternative hypothesis that the new variety has higher yield. Heʼll plant the new variety if the null is rejected; otherwise, heʼll keep planting the old.
a. A Type I error has what consequences?
b. A Type II error has what consequences?