Are charity contributions from rich families in California different from the national average? The national average of charitable contributions of rich families constitutes 1% of their income. Assume that the charitable contributions are
approximately normal with (sigma) = 0.5%. You decide to use a sample size of n = 625 from California. The sample mean of contributions is 1.5% of income of the sampled families.
A) Find the probability of type I error.
B) If we fix the level of significance at 5%, what is the power of the test against μ = 2%?
C) What is the probability of type II error?
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