# A pizza chain plans to locate

A pizza chain plans to locate a new pizza franchise on the CCSUcampus if the results of a survey show that more than 10% of CCSUstudents would eat there at least once a week. Suppose the companyis about to carry out a hypothesis test.

State the hypotheses.

Clearly state, in terms of this particular problem, what a TypeI error would mean.

Describe possible consequences of a Type I error in thissituation.

Clearly state, in terms of this particular problem, what a TypeII error would mean.

Describe possible consequences of a Type II error in thissituation.

Let p denotes the true proportion of  CCSU studentswould eat there at least once a week.

To test against

In this case,

Type I Error = Rejecting the fact that the trueproportion of  CCSU students would eat there at leastonce a week is equal or less than 10% when the true proportion isactually equal or less than 10%

Consequences of a Type I error = They willprepare more food assuming that more than 10 % students will comebut the food will be wasted since the true proportion is actuallyequal or less than 10%.

Type II Error = Accepting the fact that thetrue proportion of  CCSU students would eat there atleast once a week is less than 10% when the true proportion isactually greater than 10%

Consequences of a Type II error = They willprepare less food assuming that equal or less than 10 % studentswill come but they will need more food since the true proportion isactually greater than 10%.

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