1. Factivision is trying to decide whether to sell an upgraded Call of Muty. Customers would have to pay $50 for the upgrade. For the upgrade to be profitable, the company must sell it to more than 20% of their customers. You contact a random sample of 60 customers and find that 18 would be willing to pay $50 for the upgrade.
2. Does the sample data give convincing evidence that more than 20% of the Factivision's customers are willing to purchase the upgrade? Carry out an appropriate test at the alpha equals 0.05 significance level.
3. Which would be a more serious mistake in the setting a type 1 error or a type 2 error? Justified your answer