Z-test, power and sample size for chef output
Question
A restaurant manager suspects his chefs average at most dishes per day. Throughout, the number of dishes per chef has variance and he tests against an upper-tail alternative.
(a) He samples chefs on one day and finds a mean of dishes. Compute the test statistic for .
(b) Using chefs and , he wants to detect a true mean of (one dish above the null). How likely is he to commit a Type II error?
(c) For versus , what sample size makes ?
Short answer
(a) ; (b) ; (c) . (a) . (b) Reject when ; under the chance of falling below that is . (c) , rounded up to .
Adapted from OpenQuant; question and answer rewritten by SelfMadeQuant.com.
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Open the worked solutionLessons behind this question
- The Hypothesis Testing Framework
- Covariance and Correlation
- Pivotal Quantities and Exact Confidence Intervals
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