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In: Statistics and Probability

A company hopes to improve customer satisfaction, setting as a goal less than 5% negative comments....

  1. A company hopes to improve customer satisfaction, setting as a goal less than 5% negative comments. A random survey of 350 customers found only 10 with complaints. Does this provide evidence that the company has reached its goal?

a). Define the parameter of interest and state the relevant hypotheses.  

b). Given a significance level α=0.10, use the p-value method to perform a test. What's your conclusion? Give the procedures in detail and explain the conclusion in the context.  

      c). Describe the type I error and type II error in this context.

      d). Which error might have been made in reaching the conclusion in part (b)?

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