Television networks rely heavily on ratings of TV shows when deciding whether to renew a show for
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Television networks rely heavily on ratings of TV shows when deciding whether to renew a show for another season. Suppose a network has decided that “Miniature Golf with the Stars” will only be renewed if it can be established that more than 12% of U.S. adults watch the show. A polling company asks a random sample of 2000 U.S. adults if they watch “Miniature Golf with the Stars.” The network uses the data to perform a test of
H0:p = 0.12
Ha:p > 0.12
where p is the true proportion of all U.S. adults who watch the show. Describe a Type I error and a Type II error in this setting, and give a possible consequence of each.
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