Suppose you are interested in testing H0 : µ = 200 versus HA : µ > 200 and the following decision rule is to be used: Reject H0 if the average of 100 observations is more than 212. Assume that the population standard deviation is 80. (a) Find α for this decision rule. (b) Find β for this decision rule if µ = 220. (c) Determine the sample size so that α = 0.05 and β < 0.10 for testing H0 : µ = 200 versus HA : µ = 220.
a)
here α =P(Xbar>212)=P(Z>(212-200)*sqrt(100)/80)=P(Z>1.5)=0.0668
b)
c)
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