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Error probability

As of last year, only 20% of the employees in an organization used public transportation to commute to and from work. To determine if a recent campaign encouraging the use of public transportation has been effective, a random sample of 25 employees is to be interviewed and the number of employees currently using public transportation X is to be recorded.

a) Formulate the hypotheses in term of p, the population proportion of employees currently using public transportation

b) What should the rejection region be if α is to be controlled below .1?

c) Given the chosen rejection region, what is the maximum type 1 error probability?

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