Concept explainers
To test whether the proportion of brake problem in this year is less compared to the previous year.
Explanation of Solution
Given the following information:
The test procedure:
The null and alternative hypothesis is given by
The test statistic is given by,
Reject the null hypothesis if
Calculation:
On substituting the given values the test statistic is given by
The critical value at 0.05 level of significance is
Since
To describe the Type 1 error and Type 2 error in this problem.
Explanation of Solution
Type 1 error is the mistakes in which we reject the proportion of brake failure in the last year and this year is are same even though it is true.
Type 2 error is the mistakes in which we reject the proportion of brake failure in the last year and this year is are same even though it is not true.
Chapter 10 Solutions
The Practice of Statistics for AP - 4th Edition
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