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A researcher, concerned about the foreign ownership of the retail trade industy in the U.S., conducts a survey of retail firms in the country. in a sample of one hundred retail firms the researcher discovers that fifty-five percent have a foreigner as the majority stockholder. Test the claim that the proportion of all retail firms with foreigners as majority stockholder is greater than fifty percetn at a level of sihnificance of 0.05.
A) Draw the power curve for this test. (hint: plot these values; p=.5; p=.6 p=.7)
B) what is the provability of a type II error if the true proportion of retail firms with foreign majority stockholders is sixty percent?
C) If you require that the Type II error at sixty percent and the Type I error at fifty percent be equal, then what sample sizes should you use to conduct any subsequent test?
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