The Type II error is defined as the probability of not rejecting a null hypothesis, when the hypothesis is actually false.
In the case of this problem, this would be the probability of the store thinking that 70% or more of its clients shop only at their store, but the actual percentage of clients that don't shop at other store is lower.
Answer:
See explanation
Step-by-step explanation:
Given:
- H_0 : Claim that at least 70% of its customers do not shop at any other sporting goods stores
- H_1: less than 70% of its customers do not shop at any other sporting goods stores.
Find:
What is β, the probability of a Type II error in this scenario?
Solution:
- The type II Error is the probability of the Null hypothesis to be correct but in fact in reality the claim of Null hypothesis is wrong!
- In our case the type II error or the value of B would be:
Answer:
the probability that the sporting goods store thinks that at least 70% of its customers do not shop at any other sporting goods stores when, in fact, less than 70% of its customers do not shop at any other sporting goods stores
