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Z-test, power and sample size for chef output

Question

A restaurant manager suspects his chefs average at most 1313 dishes per day. Throughout, the number of dishes per chef has variance 44 and he tests H0:μ=13H_0:\mu=13 against an upper-tail alternative.

(a) He samples 4949 chefs on one day and finds a mean of 1515 dishes. Compute the test statistic for Ha:μ>13H_a:\mu>13.

(b) Using 4949 chefs and α=0.05\alpha=0.05, he wants to detect a true mean of 1414 (one dish above the null). How likely is he to commit a Type II error?

(c) For H0:μ=13H_0:\mu=13 versus Ha:μ=14H_a:\mu=14, what sample size makes α=β=0.05\alpha=\beta=0.05?

Short answer

(a) z=7z=7; (b) β≈0.03\beta\approx0.03; (c) n=44n=44. (a) z=(15−13)/(2/7)=7z=(15-13)/(2/7)=7. (b) Reject when xˉ>13+1.645⋅27≈13.47\bar x>13+1.645\cdot\tfrac27\approx13.47; under μ=14\mu=14 the chance of falling below that is Φ(−1.855)≈0.032\Phi(-1.855)\approx0.032. (c) n=(zα+zβ)2σ2/Δ2=(3.29)2⋅4≈43.3n=(z_\alpha+z_\beta)^2\sigma^2/\Delta^2=(3.29)^2\cdot4\approx43.3, rounded up to 4444.

Adapted from OpenQuant; question and answer rewritten by SelfMadeQuant.com.

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