Question

A fast food restaurant is considering a promotion that will offer customers to purchase a toy featuring a cartoon movie character. If more than 20% of the customers purchase the toy, the promotion will be profitable. A sample of 50 restaurants is used to test the promotion.
a. State the hypotheses associated with the restaurant's test.
b. Describe a Type I error for this situation.
c. Describe a Type II error for this situation.

Answer

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