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A plan for an executive traveler’s club has been developed by an airline on the premise...

A plan for an executive traveler’s club has been developed by an airline on the premise that 30% of its current customers would qualify for membership. A random sample of 20 customers yielded 5 who would qualify.

(a)Let H0: p=0.3 Vs H1:p<0.3. Perform the hypothesis testing in α=0.05.

(b)Find Type II error probability when p=0.4.

Hint: The assumptions are not met, so you will need to use the Binomial distribution since you cannot approximate it with normal. This is called the Small-Sample Test.

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