A company tests H0:p=0.7H_0:p=0.7H0:p=0.7 against H1:p<0.7 H_1:p<0.7\,H1:p<0.7 using a random sample of 45 outcomes. Its critical region is X≤24X\leq24X≤24.
Calculate the actual significance level.
Describe a Type I error in this context, where success means an order arrives on time.
Explain how increasing the sample size can improve the test while keeping the significance level no greater than 2.5%.