# Business Statistics 2

posted by
**Kevlin Mar** on
.

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?