Marketing and Consumer Behavior
Many families have decided to use a satellite dish instead of traditional cable TV. Satellite-dish companies offer a wide variety of premium channels and popular sports packages. The local cable TV provider in Neodesha, Kansas, Cable ONE, is concerned about losing market share and is going to conduct a hypothesis test to determine whether more advertising is needed. A random sample of homes in the city will be obtained, and the data will be used to determine whether there is any evidence that the true proportion of homes with satellite dishes is greater than 0.25.
a. State the null and alternative hypotheses in terms of p.
b. Describe type I and type II errors in this context.
c. For a fixed sample size, which is smaller, b(0.27) or b(0.35)? Justify your answer.