Consider the Hypotheses $H _ { 0 } : \mu = 950$

question 37

Essay

Consider the hypotheses $H _ { 0 } : \mu = 950$ $H _ { 1 } : \mu \neq 950$ .
Assume that $\mu = 1000$ $\alpha = 0.10$ $\sigma = 200$ , and n = 25 and $\beta$ = 0.6535
When we recalculate $\beta$ if $\alpha$ is lowered from 0.10 to 0.05, β = 0.7604
What is the effect of decreasing the significance level on the value of $\beta$ ?

---

Definitions:

Subsidize

Financial support given by the government or another organization to reduce the cost of goods, services, or activities, often to encourage development or consumption.

Basic Research

Investigative study aimed at gaining a deeper and theoretical understanding of fundamental principles without immediate commercial objectives.

Free-Rider Problem

The Free-Rider Problem occurs when individuals consume a good without paying for it, particularly in the case of public goods, leading to an underprovision of that good.

Beneficiaries

Individuals or entities that receive benefits or advantages from something, especially legal benefits or financial gains.