A local grocer believes that on an average single transaction in their store has an average of over $60.00.

(a) Explain what a TYPE I error would mean for his situation (problem context)

(b) Explain what a TYPE II error would mean for his situation (problem context)

2. In investigating the sales at the above store, a random sample of 64 transactions produced a sample mean of $65.43. Assuming a population standard deviation of 31:

(a) Test the grocer's theory at 93% confidence and state the maximum confidence to reject. Confirm with a printout from MINITAB.

(b) What is the TYPE I error of this situation? What is the TYPE I error based on the data?

(c) Assuming the true average single transaction in his store is actually $58 what is the power of this test?

(d) Assuming the true average single transaction in his store is actually $55 what is the power of this test?

(e) Assuming the true average single transaction in his store is actually $51 what is the power of this test?

(f) Assuming the true average single transaction in his store is actually $47 what is the power of this test?

Please write down the calculation formula and process