Chapter 9.1, Problem 2.1CYU

To determine

To explain: The Type I error in the provided case.

Explanation of Solution

Given:

The hypotheses are:

  $\begin{array}{l}{H}_0:p=0.63\\ H_a:p<0.63\end{array}$

Type I error happenes if the null hypthesis is rejected even if it is correct.

In this case, the type I error would occur if the manager concludes that the proportion of consumers that have to wait 2 and more than 2 minutes is less than 0.63 even if it is equal to 0.63.