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A company is looking at the results of a marketing survey and trying to establish whether men and women value the product differently. They have data on the willingness to pay for the product for 50 men and 50 women.

  • Design a hypothesis test of whether or not the mean willingness to pay for the product is different for men and women.
  • Which, if any, is more important to minimize in this case, the type I or type II error? Why?
  • How does the choice of the critical value affect the tradeoff between the type I and type II error?

1-2 pages with two references. it is a discussion question

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