Statistics Software
A Statistics professor has observed that for several years, about 13% of the students who initially enroll in his introductory Statistics course withdraw before the end of the semester. A salesperson suggests that he try a statistics software package that gets students more involved with computers, predicting that it will cut down the dropout rate. The software is expensive and the salesperson offers to let the professor use it for a semester to see if the dropout rate goes down significantly. The professor will have to pay for the software only if he chooses to continue using it.
a. Is this a one-tailed test? Explain.
b. Write the null and alternative hypotheses.
c. In this context, explain what would happen if the professor make a Type I error.
d. In this context, explain what would happen if the professor make a Type II error.
e. What is meant by the power of the test?