n recent years, a number of companies have been formed that offer competition to AT&T in long-distance calls. All advertise that their rates are lower than AT&T's, and as a result their bills will be lower. AT&T has responded by arguing that for the average consumer there will be no difference in billing. Suppose that a statistics practitioner working for AT&T determines that the mean and standard deviation of monthly long-distance bills for all its residential customers are $17.09 and $3.87, respectively. He then takes a random sample of 100 customers and recalculates their last month's bill using the rates quoted by a leading competitor. Sample mean given 17.55. Now, suppose that if the actual mean account balance is $180 the new billing system will be so profitable that we would hate to lose the opportunity to install it. Calculate the power of the test given 10% significance level.
n recent years, a number of companies have been formed that offer competition to AT&T in long-distance calls. All advertise that their rates are lower than AT&T's, and as a result their bills will be lower. AT&T has responded by arguing that for the average consumer there will be no difference in billing. Suppose that a statistics practitioner working for AT&T determines that the mean and standard deviation of monthly long-distance bills for all its residential customers are $17.09 and $3.87, respectively. He then takes a random sample of 100 customers and recalculates their last month's bill using the rates quoted by a leading competitor. Sample mean given 17.55. Now, suppose that if the actual mean account balance is $180 the new billing system will be so profitable that we would hate to lose the opportunity to install it. Calculate the power of the test given 10% significance level.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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n recent years, a number of companies have been formed that offer competition to AT&T in long-distance calls. All advertise that their rates are lower than AT&T's, and as a result their bills will be lower.
AT&T has responded by arguing that for the average consumer there will be no difference in billing. Suppose that a statistics practitioner working for AT&T determines that the mean and standard deviation of monthly long-distance bills for all its residential customers are $17.09 and $3.87, respectively. He then takes a random sample of 100 customers and recalculates their last month's bill using the rates quoted by a leading competitor. Sample mean given 17.55.
Now, suppose that if the actual mean account balance is $180 the new billing system will be so profitable that we would hate to lose the opportunity to install it. Calculate the power of the test given 10% significance level.
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