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Ads. A company is willing to renew its advertising contract with a local radio station only if the station can prove that more than 20% of the residents of the city have heard the ad and recognize the company's product. The radio station conducts a random phone survey of 400 people.
a) What are the hypotheses?
b) The station plans to conduct this test using a 10% level of significance, but the company wants the significance level lowered to 5%. Why?
c) What is meant by the power of this test?
d) For which level of significance will the power of this test be higher? Why?
e) They finally agree to use but the company proposes that the station call 600 people instead of the 400 initially proposed. Will that make the risk of Type II error higher or lower? Explain.
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Use the information below to create a storyboard (which can be a text based description for solving the problems) and a flowchart (using flowchart symbols to illustrate how you would program) to solve each problem. You may use Microsoft Word® for you..
What are the effects of the rapid development of networking technologies on businesses (data communication) networks?
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