(Step-by-Step) The proportion of families buying milk from company A in a certain city is believed to be p = 0.6. If a random sample of 10 families shows


Question: The proportion of families buying milk from company A in a certain city is believed to be p = 0.6. If a random sample of 10 families shows that 3 or fewer buy milk from company A, we shall reject the hypothesis that p = 0.6 in favor of the alternative p < 0.6. Find the probability of committing a type I error if the true proportion is p = 0.6. Evaluate the probability of committing a type II com for the alternative p = 0.3. Illustrate your answer with two overlapping graphs.

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