Question

1. The average grade in Statistical Methods for the past 3 years was 60 percent. However, recent changes to the syllabus cause the course’s lecturer to believe that the average grade might change.

(a) Construct the null and alternative hypothesis for this problem. What would it mean to make a Type II error in this situation?

(b) The population standard deviation is assumed known at \sigma = 6 percent and the sample size is 49. With \alpha = 0.03, what is the probability of failing to reject H0 for µ equal to 57 and 63 respectively?

(c) What is the power at µ = 63? What does this result tell you?


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