20. An orange juice manufacturer advertises a new orange juice product that contains 50% less sugar. This new product is expected to increase profits substantially because they create the 50% less sugar product by replacing 50% of the juice with water while selling it for the same price. An inspector wants to investigate whether the actual percentage of water in the product is within 5% of the intended 50%. He selects a random sample of 500 containers of orange juice and determined the percentage of each that is water. He plans to conduct a significance test at the a = 0.01 level to see if there is convincing evidence that the proportion of water added is different from 0.50. What is the probability that the inspector makes a Type I error? (A) 0.01 (B) 0.05 (C) 0.10 (D) 0.45 (E) 0.50

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20. An orange juice manufacturer advertises a new orange juice product that
contains 50% less sugar. This new product is expected to increase profits
substantially because they create the 50% less sugar product by replacing 50%
of the juice with water while selling it for the same price. An inspector wants to
investigate whether the actual percentage of water in the product is within 5%
of the intended 50%.
He selects a random sample of 500 containers of orange juice and determined the
percentage of each that is water. He plans to conduct a significance test at the a = o.01
%3D
level to see if there is convincing evidence that the proportion of water added is
different from 0.50. What is the probability that the inspector makes a Type I error?
(A) 0.01
(B) 0.05
(C) 0.10
(D) 0.45
(E) 0.50
Transcribed Image Text:20. An orange juice manufacturer advertises a new orange juice product that contains 50% less sugar. This new product is expected to increase profits substantially because they create the 50% less sugar product by replacing 50% of the juice with water while selling it for the same price. An inspector wants to investigate whether the actual percentage of water in the product is within 5% of the intended 50%. He selects a random sample of 500 containers of orange juice and determined the percentage of each that is water. He plans to conduct a significance test at the a = o.01 %3D level to see if there is convincing evidence that the proportion of water added is different from 0.50. What is the probability that the inspector makes a Type I error? (A) 0.01 (B) 0.05 (C) 0.10 (D) 0.45 (E) 0.50
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