Question: Computer diskettes (the precursor to USB drives) which do not meet the quality required for highdensity diskettes are sold as low-density diskettes (storing less data)

Computer diskettes (the precursor to USB drives) which do not meet the quality required for highdensity diskettes are sold as low-density diskettes (storing less data) for 80 pence each. High-density diskettes are sold for £1.20 each. A firm samples 30 diskettes from each batch of 1000 and if any fail the quality test, the whole batch is sold as double-density diskettes. What are the types of error possible and what is the cost to the firm of a Type I error?

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