Question

2. A radio station wants to control the time allotted to unpaid public service commercials. If there are too many such commercials, the station loses revenue; if there are too few, the station loses points with the Federal Communications Commission. The target figure is 1.2 commercial minutes per hour. Data on the minutes spent by the radio station on unpaid public service commercials were collected for a random sample of 24 hours of broadcasting. The results show a sample mean time of 1.35 minutes of unpaid public service commercials. The population standard deviation of the time allotted to unpaid public service commercials is estimated to be 0.5 minutes. At 10% level of significance please test whether the radio station is achieving its target for the time it spends on the public service commercials. Show the necessary steps and explain what your conclusion means. What do you think will happen to probability of type II error if you were to re-do the test at 1% level of significance? Please briefly justify your answer

Answer 1

As the type I error increase to 1% from 10% , chances of type II error will increase.