(See Solution) You earned another new customer account with Wainwright Lawn and Garden Company. Marketing manager Bill Williams believes that the average


Question: You earned another new customer account with Wainwright Lawn and Garden Company. Marketing manager Bill Williams believes that the average income for the company’s customers is less than $30,000.00. Williams made this claim to defend his selection of brands aimed at lower-income customers. To verify the claim, he took a simple random sample of 400 customers and conducted a survey to determine their income levels. The assumption is that σ = $4,000. The significance level is 0.10. If the actual mean income is $29,800, determine the probability that the test will mistakenly lead the managers to "accept" the null hypothesis.

  1. Specify the null and alternative hypotheses
  2. Calculate the critical value Zc
  3. Compute the test statistic.
  4. Determine Beta.

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