You are thinking about opening a restaurant and are searching for a good location. From the research

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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 Ha: 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.

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The Practice Of Statistics

ISBN: 9781319113339

6th Edition

Authors: Daren S. Starnes, Josh Tabor

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