Exercise 1. Two different companies have applied to provide cable television service in a certain region. Let p denote the proportion of all potential subscribers who favor the first company over the second. Consider testing H₁ : p = .5 versus H₁ : p ‡ .5 based on a random sample of 25 individuals. Let the test statistic X be the number in the sample who favor the first company and x represent the observed value of x If the test rejects Ho if x ≥ 15 or x ≤ 10. Compute the probability of type I error.

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