A statistics major and a finance major decide to get married. In order to investigate their per person expenses they select a random sample guests they have invited to the wedding and records whether or not each person plans to attend the wedding. They decide to test Ho: p = 0.75 versus Ha: P 0.75 where p = the true proportion of all guests that will attend the wedding.

a. The power of the test to reject Ho: p = 0.75 when p = 0.70 using a = 0.05 and n = 25 subjects is 0.10. Interpret this value.

b. Find the probability of a Type I error and the probability of a Type II error for the test in part (a).

c. Determine whether each of the following changes would increase or decrease the power of the test. Explain your answers.

Use a = 0.01 instead of a = 0.05.

Use n = 100 instead of n = 25.