Dropouts A Statistics professor has observed that forseveral years about 13% of the students who initiallyenroll in his Introductory Statistics course withdrawbefore the end of the semester. A salesman suggests thathe try a statistics software package that gets studentsmore involved with computers, predicting that it will cut the dropout rate. The software is expensive, and the sales-man offers to let the professor use it for a semester to see if the dropout rate goes down significantly. The professorwill have to pay for the software only if he chooses tocontinue using it.a) Is this a one-tailed or two-tailed test? Explain.b) Write the null and alternative hypotheses.c) In this context, explain what would happen if theprofessor makes a Type I error.d) In this context, explain what would happen if theprofessor makes a Type II error.e) What is meant by the power of this test?

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Dropouts A Statistics professor has observed that for
several years about 13% of the students who initially
enroll in his Introductory Statistics course withdraw
before the end of the semester. A salesman suggests that
he try a statistics software package that gets students
more involved with computers, predicting that it will cut
the dropout rate. The software is expensive, and the sales-
man offers to let the professor use it for a semester to see
if the dropout rate goes down significantly. The professor
will have to pay for the software only if he chooses to
continue using it.
a) Is this a one-tailed or two-tailed test? Explain.
b) Write the null and alternative hypotheses.
c) In this context, explain what would happen if the
professor makes a Type I error.
d) In this context, explain what would happen if the
professor makes a Type II error.
e) What is meant by the power of this test?
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