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After test-marketing a new product, a restaurant chain concluded that introduction of the product nationwide would...

After test-marketing a new product, a restaurant chain concluded that introduction of the product nationwide would increase its sales by more than 22%. This conclusion was based on recording sales information for a random sample of its restaurants selected for the marketing trial. With μ denoting the mean percentage increase in sales for all its restaurants, consider using the sample data to decide between H0 : μ = 22 and Ha : μ > 22.

(a) Is the restaurant chain's conclusion consistent with a decision to reject H0 or to fail to reject H0?

Reject H0   

or

Fail to reject H0    

(b) If the restaurant is incorrect in its conclusion, is the company making a Type I or a Type II error?

Type I error

or

Type II error

Math   Statistics-And-Probability   
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