5. A random draw (with replacement) of 1000 balls from a pool of several million balls is conducted. Each ball is either blue or red. Let p denote the fraction of blue balls in the population. Let p...

Statistics

Extracted text: 5. A random draw (with replacement) of 1000 balls from a pool of several million balls is conducted. Each ball is either blue or red. Let p denote the fraction of blue balls in the population. Let p denote the fraction of blue balls in the sample. You want to test the competing hypotheses Ho: p = 0.4 vs. H1: p # 0.4. Suppose that you decide to reject Ho if lp – 0.4| > 0.01. Note that the sample of 1000 balls is considered as a large sample. What is the type l error of this test? а. 0.178 b. 0.256 c. 0.367 d. 0.488 e. 0.519