A union of restaurant and foodservice workers would like to estimate this year's mean hourly wage u for foodservice workers in the U.S. Last year's mean hourly wage was $8.25, and there is good reason to believe that this year's value is less than last year's. The union decides to do a statistical test to see if it can be concluded that the mean has decreased. The union chooses random sample of 50 wages from this year. Suppose that the population of hourly wages of foodservice workers in the U.S. has a standard deviation of $1.18 and that the union performs its hypothesis test using the 0.05 level of significance. Based on this information, answer the questions below. Carry your intermediate computations to four or more decimal places, and round your responses as indicated. (If necessary, consult a list of formulas.) (a) What are the null hypothesis H, and the alternative hypothesis H, that the union should use for the test? Ho: µ = 8.25 H: µ < 8.25 (b) Assuming that the actual value of u is $7.80, what is the probability that the union commits a Type Il error? Round your response to two or more decimal places. O=0 OSO O

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(d) Suppose that the union decides to perform another statistical test using the same
population, the same null and alternative hypotheses, and the same level of
significance, but for this second test the union chooses a random sample of size
100 instead of a random sample of size 50. Assuming that the actual value of u is
$7.80, how does the power of this second test compare to the power of the
original test?
OThe power of the second test is greater than the power of the original test
OThe power of the second test is less than the power of the original test
OThe powers of the two tests are equal
Transcribed Image Text:(d) Suppose that the union decides to perform another statistical test using the same population, the same null and alternative hypotheses, and the same level of significance, but for this second test the union chooses a random sample of size 100 instead of a random sample of size 50. Assuming that the actual value of u is $7.80, how does the power of this second test compare to the power of the original test? OThe power of the second test is greater than the power of the original test OThe power of the second test is less than the power of the original test OThe powers of the two tests are equal
A union of restaurant and foodservice workers would like to estimate this year's mean hourly wage u for foodservice workers in the U.S. Last year's mean hourly
wage was $8.25, and there is good reason to believe that this year's value is less than last year's. The union decides to do a statistical test to see if it can be
concluded that the mean has decreased. The union chooses a random sample of 50 wages from this year.
Suppose that the population of hourly wages of foodservice workers in the U.S. has a standard deviation of $1.18 and that the union performs its hypothesis
test using the 0.05 level of significance.
Based on this information, answer the questions below. Carry your intermediate computations to four or more decimal places, and round your responses as
indicated.
(If necessary, consult a list of formulas.)
(a) What are the null hypothesis H, and the alternative hypothesis H, that the union
p
should use for the test?
Ho: µ = 8.25
H: µ < 8.25
(b) Assuming that the actual value of u is $7.80, what is the probability that the union
O=0
OSO
commits a Type Il error? Round your response to two or more decimal places.
O<O
(c) What is the probability that the union rejects the null hypothesis when, in fact, it is
true? Round your response to two or more decimal places.
Transcribed Image Text:A union of restaurant and foodservice workers would like to estimate this year's mean hourly wage u for foodservice workers in the U.S. Last year's mean hourly wage was $8.25, and there is good reason to believe that this year's value is less than last year's. The union decides to do a statistical test to see if it can be concluded that the mean has decreased. The union chooses a random sample of 50 wages from this year. Suppose that the population of hourly wages of foodservice workers in the U.S. has a standard deviation of $1.18 and that the union performs its hypothesis test using the 0.05 level of significance. Based on this information, answer the questions below. Carry your intermediate computations to four or more decimal places, and round your responses as indicated. (If necessary, consult a list of formulas.) (a) What are the null hypothesis H, and the alternative hypothesis H, that the union p should use for the test? Ho: µ = 8.25 H: µ < 8.25 (b) Assuming that the actual value of u is $7.80, what is the probability that the union O=0 OSO commits a Type Il error? Round your response to two or more decimal places. O<O (c) What is the probability that the union rejects the null hypothesis when, in fact, it is true? Round your response to two or more decimal places.
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