Chapter 9.1, Problem 2.3CYU

To determine

To explain: The error that is more serious in the provided case.

Answer to Problem 2.3CYU

Type I error.

Explanation of Solution

Given:

The hypotheses are:

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

In this case, Type I error seems to be more serious because manager thinks that more employees would reduce the waiting time of new customers to get their food but in reality this is not the case.