CEO Chris Foreman of Pacific Theaters Exhibition Corp. is taking steps to reverse the decline in movie attendance. Moviegoers’ comfort is one of the issues facing theaters. Pacific Theaters has begun offering assigned seating, no in-theater advertising, and a live announcer who introduces films and warns patrons to turn off cell phones. Despite such efforts, an Associated Press/America Online News poll of 1,000 adults discovered that 730 of those surveyed preferred seeing movies in their homes.
a. Using a significance level of 0.025, conduct a statistical procedure to determine if the Associated Press/America Online News poll indicates that more than 70% of adults prefer seeing movies in their homes. Use a p -value approach.
b. Express a Type II error in the context of this exercise’s scenario.