Refer to Exercises 86 and 88. a. Explain one disadvantage of using = 0.10 instead of

Refer to Exercises 86 and 88.

a. Explain one disadvantage of using α = 0.10 instead of α = 0.05 when performing the test.

b. Explain one disadvantage of taking a random sample of 50 people instead of 30 people.

Exercises 86 and 88.

You are thinking about opening a restaurant and are searching for a good location. From the research you have done, you know that the mean income of those living near the restaurant must be over $85,000 to support the type of upscale restaurant you wish to open. You decide to take a simple random sample of 50 people living near one potential site. Based on the mean income of this sample, you will perform a test at the α=0.05 significance level of H₀: μ = $85,000 versus H_a: μ > $85,000, where μ is the true mean income in the population of people who live near the restaurant. The power of the test to detect that μ = $86,000 is 0.64. Interpret this value.