Question: Pop’s Popcorn Inc. needs to determine the optimum power and time settings for their new licorice flavored microwave popcorn. They want to find a combination of power and time that delivers high quality popcorn with less than 10% of the kernels left unpopped, on average a value that their market research says is demanded by their customers. Their research department experiments with several settings and determined that a power 9 at 4 minutes is optimum. Their tests confirm that this setting meets the less than 10% requirement. They change the instructions on the box and promote a new money back guarantee of less than 10% unpopped kernels.

1. If in fact the settings results in more than 10% kernels unpopped, what kind of error have they made? What will the consequence be for the company.
2. To reduce the risk of making an error, the President tells them to test 8 more bags of popcorn selected at random. They find the following percentage of unpopped kernels: 7, 13.2, 10, 6, 7.8, 2.8, 2.2, 5.2. Does this provide evidence that the setting meets their goal of less than 10% unpopped? Explain.

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