Question: Problem 5 According to the International Data Corporation, Compaq Computers holds a 16% share of the personal computer market in the United States and

Problem 5 According to the International Data Corporation, Compaq Computers holds a

Problem 5 According to the International Data Corporation, Compaq Computers holds a 16% share of the personal computer market in the United States and a 12.7% share of the worldwide market. Suppose a market business analyst believes that Compaq holds a higher share of the market in the southwestern region of United States. To verify this theory, he randomly selects 428 people who have purchased a personal computer in the last month in the southwestern region of the United States. Eighty-four of these purchases were Compaq Computers. Using a 1% level of significance, test the market business analyst's theory. What is the probability of making Type I error? (4 marks)

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