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Olestra is a fat substitute approved by the FDA for use in snack foods. Because there have been anecdotal reports of gastrointestinal problems associated with

Olestra is a fat substitute approved by the FDA for use in snack foods. Because there have been anecdotal reports of gastrointestinal problems associated with olestra consumption, a randomized, double-blind, placebo-controlled experiment was carried out to compare olestra potato chips to regular potato chips with respect to GI symptoms ("Gastrointestinal Symptoms Following Consumption of Olestra or Regular Triglyceride Potato Chips," J. of the Amer. Med. Assoc., 1998: 150-152). A researcher believes that the percentage of GI symptoms among all people who eat Olestra chips is higher than the percentage of GI symptoms among all people who eat regular chips. Test the researcher's claim at = 0.01.

a) Set up H0 and Ha.

b) Let p1= percentage of GI symptoms among people who eat Olestra chips

and p2= percentage of GI symptoms among people who eat regular chips.

What are type I error and type II error?

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