A newspaper publisher is considering launching a new \"national\"newspaper in Anytown. It is believed that the newspaper would haveto capture over 12% of the market in order to be financiallyviable. During the planning stages of this newspaper, a marketsurvey was conducted of a sample of 400 readers. After providing abrief description of the proposed newspaper, one question asked ifthe survey participant would subscribe to the newspaper if the costdid not exceed $20 per month. Suppose that 58 participants saidthey would subscribe. a. Can the publisher conclude that theproposed newspaper will be financially viable? Perform theappropriate test at a 1% level of significance. b. Suppose theactual value of the overall proportion of readers who wouldsubscribe to this newspaper is 0.13. Was the decision made in part(a) correct? If not, what type of error was made? c. State themeaning of a Type I and Type II error in the context of thisscenario. And what would be the repercussions of making theseerrors to the publisher?
