Occasionally, warning flares of the type contained in most automobile emergency kits fail to ignite. A consumer advocacy group wants to investigate a claim against a manufacturer of flares brought by a person who claims that the proportion of defective flares is much higher than the value of .1 claimed by the manufacturer. A large number of flares will be tested, and the results will be used to decide between H0: p ! .1 and Ha: p + .1, where p represents the true proportion of defective flares made by this manufacturer. If H0 is rejected, charges of false advertising will be filed against the manufacturer.
a. Explain why the alternative hypothesis was chosen to be Ha: p + .1.
b. In this context, describe Type I and Type II errors, and discuss the consequences of each.
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