Question 5 (20 points)

Read the case study, "

Data Enables Insights from Sericulture: Jayalakshmi Agro Tech

", and answer the

following questions.

Use 5% significance where necessary.

1.

Jayalaxmi Agro Tech (JAT) believes that the average income per acre from sericulture is at least Rs.

35,000 with a standard deviation of Rs. 40,000. Apply an appropriate hypothesis test to check this claim.

2.

In the context of question 1, what is the probability of incorrectly concluding that the average income per

acre is less than Rs. 35,000 when in fact the average income per acre is Rs. 36,000. What is the power of

the hypothesis test?

3.

Realistically, it is rare that the population standard deviation is known. If the population standard

deviation is not known, validate the hypothesis set up in question 1 using an appropriate test.