Test the market researchers theory


Direct Computers holds a 16% share of the personal computer market. Suppose a market researcher believes that Direct Computers holds a higher share of the market in New Zealand. To verify this theory, he randomly selects 428 people who purchased a personal computer in the last month in New Zealand. Eighty-four of these purchases were Direct Computers. Using a 1% level of significance, test the market researcher's theory. What is the probability of making a Type I error? If the market share is really .21 in New Zealand, what is the probability of making a Type II error?

Solution Preview :

Prepared by a verified Expert
Basic Statistics: Test the market researchers theory
Reference No:- TGS0685058

Now Priced at $10 (50% Discount)

Recommended (96%)

Rated (4.8/5)