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A city newspaper states that the average time required to sell a used car advertised in...

A city newspaper states that the average time required to sell a used car advertised in the newspaper is less than 5 days. Assuming that the standard deviation of the population is 2.1 days, if the true value of the population mean is 4.1 days and a sample size of n = 49 is used with an alpha equal to 0.05, the probability that the Hypothesis test lead to a type II error is approximately 0.0869.

Select one: True False

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Answer #1

Hypotheses are:

Given information:

Critical value of z for which we will reject the null hypothesis is -1.645. So critical value of sample mean for which we will reject the null hypothesis is

Now the z-score for and is

So type II error is

Type II error = P(z >= 1.36) = 0.0869

Hence, it is true.

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