A fast food franchiser is considering building a restaurant at a certain loaction. According to a financial analysis, a site is acceptable only if the number of pedestrians passing the location averages more than 100 per hour. A random sample of 50 hours produced mean=110 and s=12 pedestrians per hour.
a) Describe type 1 and type 2 errors in this situation and the consequences of committing each type. which error is more expensive for the franchisor to make
b) Consider your answer in a) should you select alpha to be larger of smaller? explain
c) Would it be prefereable to ask instead whether there is enough evidence to conclude that the site is unacceptable? explain