A bus company states that 30% of its buses arrive late. After a new timetable is introduced, the manager believes that the proportion of buses that arrive late has decreased.
She chooses a random sample of 20 buses and records the number, , that arrive late. She plans to carry out a test at the 5% significance level, using the following hypotheses, where is the proportion of buses that arrive late.
Assuming that the null hypothesis is true, find
(i) ,
(ii) .
The critical region for the test is .
(i) Explain why the critical region is .
(ii) Find the probability of a Type I error.
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