Question: Suppose n = 36 observations are taken from a normal distribution where = 8.0 for the purpose of testing H 0 : =
Suppose n = 36 observations are taken from a normal distribution where σ = 8.0 for the purpose of testing H0: μ = 60 versus H1: μ ≠ 60 at the α = 0.07 level of significance. The lead investigator skipped statistics class the day decision rules were being discussed and intend to reject H0 if y falls in the region (60 − y∗, 60 + y∗).
(a) Find y̅∗.
(b) What is the power of the test when μ = 62?
(c) What would the power of the test be when μ = 62 if the critical region had been defined the correct way?
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