Reconsider the accompanying sample data on expense ratio (%) for large-cap growth mutual...

Reconsider the accompanying sample data on expense ratio (%) for large-cap growth mutual funds first introduced in Exercise 1.53.

A normal probability plot shows a reasonably linear pattern. a. Is there compelling evidence for concluding that the population mean expense ratio exceeds 1%? Carry out a test of the relevant hypotheses using a significance level of .01.

b. Referring back to (a), describe in context type I and II errors and say which error you might have made in reaching your conclusion. The source from which the data was obtained reported that μ = 1.33for the population of all 762 such funds. So did you actually commit an error in reaching your conclusion?

c. Supposing that σ = .5 , determine and interpret the power of the test in (a) for the actual value of μ stated in (b).