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Business Statistics 2

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A consumer research group is interested in testing an automobile manufacturer’s claim
that a new economy model will travel at least 25 miles per gallon of gasoline (H0: μ  25).
a. With a .02 level of significance and a sample of 30 cars, what is the rejection rule based
on the value of for the test to determine whether the manufacturer’s claim should be
rejected? Assume that σ is 3 miles per gallon.
b. What is the probability of committing a Type II error if the actual mileage is 23 miles
per gallon?
c. What is the probability of committing a Type II error if the actual mileage is 24 miles
per gallon?
d. What is the probability of committing a Type II error if the actual mileage is 25.5 miles
per gallon?

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