In: Statistics and Probability
(a) A researcher wishes to prove that more than 75% of undergraduate students at the Mcgill University read McGill's student newspaper regularly. If 80% of all McGill students read the newspaper regularly, what is the probability that with a random sample of 227 students, the researcher ends up with insufficient evidence to reject the null hypothesis at the 1% significance level? In other words, what is the probability that the researcher makes a Type II error? Answer with hypotheses in formal notation, TWO fully-labelled graphs, a quantitative analysis, and the requested probability. Your graphs should be unstandardized, similar to the ones you have seen in lectures, with points/areas of interest clearly labelled.
(b) What would happen to the probability you calculated in part (a) if the researcher was trying to prove that more than 72% of undergraduate students read the newspaper, while everything else in the question remained unchanged? What is the intuition behind this? You do not need any calculations. Explain your reasoning in 1-2 sentences.