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Using information from the previous example: Suppose I am planning to open a coffee shop around the university that is located in downtown. I will
Using information from the previous example: "Suppose I am planning to open a coffee shop around the university that is located in downtown. I will engage in this investment if the number of students visiting the campus averages more than 100 per hour. The number of students visited the campus for each of 40 hours with 106 sample mean was recorded. I assume that the population standard deviation is 16." Assume that some of my students suggested me not to invest in this opportunity; they stated that it was an unprofitable investment. But, I am worried about missing a profitable investment opportunity if the estimation of my students was incorrect. Now, I believe that the actual number of students visiting the campus is 104 which may result in high profit. Using the information given in the previous example along with new information provided above, (1) formulate the probability of Type-II error when the mean is 104 at the 1% significance level (2 Points), (1) and determine the probability of a Type II error when the mean is 104 at the 1% significance level (3 Points)
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