Question

3.   A maker of custom orthotics has customers that suffer from foot pain. Their current shoe insert reduces foot pain in 65% of buyers. They want to test whether their new product is better. We can write hypotheses as:
   H0: The new product performs as well as the old product, p = 0.65
   Ha: The new product performs better than the old product, p > 0.65
a.   What would be a Type I error in this situation?
b.   What would be a Type II error in this situation?

Answer 1

a) type I error is to reject the null hypothesis and conclude that new product performs better than the old product while in actual new product reduces foot pain in at most 65% of buyers

b)Type II error is fail to reject null hypothesis that new product perform same as the old product while in actual new product performs better than the old product or reduces foot pain in more then 65% of buyers