A fast-food restaurant is considering a promotion that will offer customers to purchase a toy featuring a cartoon movie character. If more than 20% of the customers purchase the toy, the promotion will be profitable. A sample of 50 restaurants is used to test the promotion
a. State the hypotheses associated with the restaurant's test.
b. Describe a Type I error for this situation.
c. Describe a Type II error for this situation.
a. H0: p ? .20
Ha: p > .20
b. A Type I error for this situation would be to incorrectly conclude that the promotion would be profitable.
c. A Type II error for this situation would be to conclude that the promotion would not be profitable when more than 20% of customers would purchase the toy.
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