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Describe how a Type I or Type II error could occur in the following situations and...

Describe how a Type I or Type II error could occur in the following situations and give some of the factors that would determine the seriousness of the errors. a. A bookstore is trying to determine what proportion of the students buying a certain textbook will also buy an optional student guide. In the past, 40% of the students buying the text have also bought the guide. The bookstore wants to test H0: p ¼ 0.40 against Ha: p . 0.40.

Biostatistics

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Null hypothesis Ho : P = 0.4

Alternate hypothesis Ha : P not equal to 0.4

Type 1 error means rejection of true null hypothesis Ho

Type 2 error means failure to reject the false null hypothesis

So, type 1 error would occur if we will conclude that true proportion is not equal to 0.4, but infact it is equal to 0.4

type 2 error would occur if we will conclude that true proportion is equal to 0.4, while infact it is not equal to 0.4

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