A University Library Ordinarily Has a Complete Shelf Inventory Done $\alpha = .05$

question 58

Essay

A university library ordinarily has a complete shelf inventory done once every year. Because of new shelving rules instituted the previous year, the head librarian believes it may be possible to save money by postponing the inventory. The librarian decides to select at random 1000 books from the library's collection and have them searched in a preliminary manner. If evidence indicates strongly that the true proportion of misshelved or unlocatable books is less than .02, then the inventory will be postponed.
a. Among the 1000 books searched, 15 were misshelved or unlocatable. Test the relevant hypotheses and advise the librarian what to do (use $\alpha = .05$
).
b. If the true proportion of misshelved and lost books is actually .01, what is the probability that the inventory will be (unnecessarily) taken?
c. If the true proportion is .05, what is the probability that the inventory will be postponed?

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