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Course: AP??/College Statistics?>?Unit 10
Lesson 7: Potential errors when performing tests- Introduction to Type I and Type II errors
- Examples identifying Type I and Type II errors
- Type I vs Type II error
- Introduction to power in significance tests
- Examples thinking about power in significance tests
- Error probabilities and power
- Consequences of errors and significance
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Error probabilities and power
Problem
Asha owns a car wash and is trying to decide whether or not to purchase a vending machine so customers can buy coffee while they wait. She'll get the machine if she's convinced that more than of her customers would buy coffee. She plans on taking a random sample of customers and asking them whether or not they would buy coffee from the machine, and she'll then do a significance test using to see if the sample proportion who say "yes" is significantly greater than .
Which situation below would result in the highest power for her test?