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question1:
as the level of significance increases, the width of the interval decreases along with the higher probability of error, so i too think it should be (a)
question2:
here the null hypothesis will take the form p<or= maximum allowable proportion of defective items, a type I error which is the probability of rejecting the null hypothesis when it is actually true should be producing too many defects when it actually isnt , as we are rejecting the null hypothesis when its true. so it should be (a).
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