The Acura car company is debating whether to recall its latest sedan because of a malfunction in its airbags. Acura executives think that the defect rate is probably low, but if the airbags malfunction and do not open in 2% or more of crashes, then they will need to put out a general recall.
a. State the hypothesis
H0:
HA:
b. Using the context of this problem, write a description of a type I error and the consequences of that error
c. Using the context of this problem, write a description of a type II error and the consequences of that error
d. If we increase the significance from 5% to 10%, what will happen to the probability of
i. A type I error?
ii. A type II error?