2. Suppose a survey of a random sample of 150 smokers, conducted by the Department of Health, suggests that the mean number of cigarettes a person smokes in a day in Smokerland Y is 4 and the standard deviation Sy is 1. The Department of Health is concerned about the results of the survey and wants to test whether the mean number of cigarettes a person smokes in a day is 3.70 or not. Suppose the Department of Health uses a 5% significance level, Suppose the Department of Health decides not to reject the null hypothesis if [ (Ho) if 3.5 < y < 3.9 ]. What is the size of the test? If μy is 4.1, what is the Power of the test (15 points) (15 points)

ENGR.ECONOMIC ANALYSIS
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2. Suppose a survey of a random sample of 150 smokers, conducted by the Department of
Health, suggests that the mean number of cigarettes a person smokes in a day in
Smokerland Y is 4 and the standard deviation Sy is 1. The Department of Health is
concerned about the results of the survey and wants to test whether the mean number of
cigarettes a person smokes in a day is 3.70 or not. Suppose the Department of Health uses
a 5% significance level,
Suppose the Department of Health decides not to reject the null hypothesis if
[ (Ho) if 3.5 < y < 3.9
].
What is the size of the test?
If μy is 4.1, what is the Power of the test
(15 points)
(15 points)
Transcribed Image Text:2. Suppose a survey of a random sample of 150 smokers, conducted by the Department of Health, suggests that the mean number of cigarettes a person smokes in a day in Smokerland Y is 4 and the standard deviation Sy is 1. The Department of Health is concerned about the results of the survey and wants to test whether the mean number of cigarettes a person smokes in a day is 3.70 or not. Suppose the Department of Health uses a 5% significance level, Suppose the Department of Health decides not to reject the null hypothesis if [ (Ho) if 3.5 < y < 3.9 ]. What is the size of the test? If μy is 4.1, what is the Power of the test (15 points) (15 points)
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