Question: Given the two hypotheses H 0 : = 400 H 1 : = 415 and 2 = 1000 (for both hypotheses): (a)

Given the two hypotheses

H0: μ = 400
H1: μ = 415

and σ2 = 1000 (for both hypotheses):

(a) Draw the distribution of e under both hypotheses.

(b) If the decision rule is chosen to be: reject H0 if e ≥ 410 from a sample of size 40, find the probability of a Type II error and the power of the test.

(c) What happens to these answers as the sample size is increased? Draw a diagram to illustrate.

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