A local grocer believes that on the average single transaction in their store has an average over $60.00.

(1) Explain what a TYPE I error would mean for his situation (problem context)

(2) Explain what a TYPE II error would mean for his situation (problem context)

In investigating the sales at the above store, a random sample of 64 transactions produced a sample mean of $65.43. Assuming a population standard deviation of 31:

(1) Test the grocer's theory at 93% confidence and state the maximum confidence to reject. Confirm with a printout from MINITAB.

(2) What is the TYPE I error of this situation? What is the TYPE I error based on the data?

(3) Assuming the true average single transaction in his store is actually $47 what is the power of this test?