1. More on the power for a different alternative. A one-sided test of the null hypothesis μ = 20 versus the alternative μ = 35 has power equal to 0.60. Will the power for the alternative μ = 28 be higher or lower than 0.73? Explain your answer.
2. Where do you buy? Consumers can purchase nonprescription medications at food stores, mass merchandise stores such as Target and Walmart, or pharmacies. About 45% of consumers make such purchases at pharmacies. What accounts for the popularity of pharmacies, which often charge higher prices?
A study examined consumers’ perceptions of overall performance of the three types of stores, using a long questionnaire that asked about such things as “neat and attractive store,” “knowledgeable staff,” and “assistance in choosing among various types of nonprescription medication.” A performance score was based on 27 such questions. The subjects were 201 people chosen at random from the Indianapolis telephone directory.
What population do you think the authors of the study want to draw conclusions about? What population are you certain they can draw conclusions about?
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