A stat professor has observed that for many years about 13% of the students who initially enroll in his introduction to stats course withdraw before the end of semester. A salesman recommends that he try statistics software package that gets students more involved with computers, predicting that it will cut the dropout rate. The software is expensive, and salesman offers to let the professor employ it for a semester to see if the dropout rate goes down significantly. The professor will have to pay for software only if he selects to continue using it.
a) Is the a one tailed or two tailed test? Explain.
b) Write the null and alternative hypotheses.
c) In this context, explain what would happen if the professor makes a type 1 error.
d) In this context, explain what would happen if the professor makes a type 2 error.
e) What is meant by the power of this test?