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Urn A contains 30 blue pens and 70 yellow pens while Urn B contains 80 blue pens and 20 yellow pens. Probability of choosing a blue pen if Urn A is 30/100 = .3 and Urn B choosing a yellow pen probability is 80/100=.8. If p is the probability of choosing a blue pen, then the two hypothesis for Null H: p=.3 and for Alternative H :p=.8. At random and with replacement 3 pens are picked from one of the Urns. Decision to test: Reject Null H and accept Alternative H if the number of blue pens in the sample is 2 or 3.What is the type 1 probability and what is the type 2 probability?
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