Career Consultants is conducting a study of the average number of applications received by employers who place job announcements in the Wall Street Journal. The Journal recently reported that the average number of applications (μ) is more than 150 per announcement. You set up a hypothesis test to test the following hypotheses H0: μ < 150 applications per announcement Ha: μ > 150 applications per announcement using the following decision rule: Reject the null hypothesis if the sample mean is greater than 156. If sample size (n) for the study is 49 announcements and the population standard deviation (σ) is estimated to be 21 applications,
a. What is the significance level being used in your test?
b. Suppose the population mean is actually 160 applications. Given the test you set up, how likely is it that you would fail to reject the 150 applications null hypothesis.
c. Suppose the population mean is actually 153 applications. Given the test you set up, how likely is it that you would fail to reject the 150 applications null hypothesis?