Question

Suppose that you are given the following problem :

A construction firm thinks that it is receiving 100 steel pipes with an average tensile strength of 10,000 pounds per square inch(lbs p.s.i.).This is the mean,μ.The size of the sample was n=100.The firm also knows that the population standard deviation,sigma,σ,is 400 p.s.i.The firm chooses a confidence interval of 95 %.This is equivalent to a level of significance,α,of 5 %(.05),where the null hypothesis is H0:μ0=10,000 and the alternative hypothesis is H1:μ0≠10,000.The company does not know that the actual, average tensile strength is not μ0=10,000,but μ1 =10,100.

Calculate the probability of making a Type II (β) error both graphically and quantitatively, the Power of the Test, AND WHETHER YOU CAN CONTINUE ON AND PERFORM A TYPE I error test.

Answer 1