A manufacturer receives large shipments of keyboards that will be sold with its computers. The computer manufacturer does not accept any shipments unless there is evidence that fewer than 5% of the keyboards are defective.
a. What are the null and alternative hypotheses for this situation?
b. Explain the Type I and Type II errors in the context of the keyboard shipments.
c. From the computer manufacturer's point of view, which type of error would be the most important? Why?
d. From the keyboard supplier's point of view, which type of error would be the most important? Why?