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QUESTION

POPCORN

According to popcorn.org, the mean consumption of popcorn annually by Americans is 54 quarts. The marketing division of popcorn.org unleashes an aggressive campaign designed to get Americans to consume even more popcorn.

(a)   Suppose, in fact, that the mean annual consumption of popcorn after the marketing campaign is 53.4 quarts. Has a Type I or Type II error been made by the marketing department? If they tested the hypothesis at the α = 0.05 level of significance, what is the probability of making a Type I error?

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