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Continuing from the gas example, using the hypothesis terms, our H0: mu=1, H1: mu not equal to 1.
1. Continuing from the gas example, using the hypothesis terms, our H0: mu=1, H1: mu not equal to 1. Let us assume the volume of gas dispensed for one supposed gallon, denoted as X, follows normal distribution with a known sigma=0.02. And you decide to use X_bar out of 30 measures of one supposed gallon as the test statistic, what are reject region and do not reject region using alpha=0.05, respectively? Draw the density function, identify the rejection non rejection region on the graph, and use excel for the calculation. Share your result in the discussion board.
If the gas station has secretly adjust the machine to mu=0.95 gallon. The sigma stays the same at 0.02. What is the power, i.e. 1 - beta, of your test in part 1? Draw the density function and use excel for calculation.
