Psychology and Human Behavior
Recently a panel of Canadian hotel industry IT executives reported on hotel technology trends. Although 22-30% of guests shop for a room using a mobile device, only 2% actually book a room using this technology. Many shoppers still feel insecure completing a transaction with a credit card via a mobile device.
Executives at Alt Hotels have decided to conduct a survey to determine whether hotel guests are becoming more comfortable booking a room using a mobile device. If the proportion (p 5 0.02) has increased, they intend to invest more money in this technology.
a. State the null and the alternative hypothesis.
b. Describe a type I error and a type II error in this context.