Your company markets a computerized medical diagnostic program used to evaluate thousands of people. The program scans the results of routine medical tests and refers the case to a doctor if there is evidence of a medical problem. The diagnostic program makes a decision about each person. You want to see is the program is operating correctly.

a. State the null and alternative hypotheses.

b. In terms of hypotheses you use, what would a type I error be? What would be the consequences in the context of this question of a type I error?

c. What would a type II error be? What would be the consequences of a type II error?

d. The program can be adjusted in decrease one error probability at the cost of increasing the other error probability. Which would you choose to make smaller and why?