A life insurance salesperson claims the average worker in the city of Winnipeg has no more than

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A life insurance salesperson claims the average worker in the city of Winnipeg has no more than $25,000 of personal life insurance. To test this claim, you randomly sample 100 workers in Winnipeg. You find that this sample of workers averages $26,650 of personal life insurance. The population standard deviation is $12,000.

a. Determine whether the test shows enough evidence to reject the null hypothesis posed by the salesperson. Assume the probability of committing a Type I error is 0.05.

b. Assuming that the actual average for this population is $30,000, what is the probability of committing a Type II error?

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Business Statistics For Contemporary Decision Making

ISBN: 9781119577621

3rd Canadian Edition

Authors: Ken Black, Ignacio Castillo

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