Question 9.384
33. Accountants' Salaries. According to Salary.com, the mean salary for entry-level accountants in 2010 was $41,560. Let this value represent the hypothesized population mean, and assume that the population standard deviation equals $5000. Suppose we have a recent random sample of 100 entry-level accountants and want to test, using level of significance , whether the population mean salary has changed since 2010.
- Describe what a Type II error would mean in the context of this problem.
- What is the probability of making a Type II error when the actual mean salary takes the following values?
- $42,000
- $43,000
- $44,000
- $45,000
- Calculate the power of the hypothesis test for the values of given in (b).
- Construct the power curve for the values of given in (b).
9.7.33
(a) Concluding that the population mean salary for accountants is equal to $41,560 when, in reality, it has changed from $41,560.
(b) and (c)
| Probability of Type 11 error: β | Power of Test: 1 – β | |
|---|---|---|
| (i) $42,000 | ||
| (ii) $43,000 | ||
| (iii) $44,000 | ||
| (iv) $45,000 |
(d)
