# Thread: Help Calculating Type II Error

1. ## Help Calculating Type II Error

I have tried searching and I am still a little confused, so I thought just loading up the problem I am working on will help me understand this better.

Originally Posted by Problem
A health insurer has determined that the "reasonable and customary" fee for a certain medical procedure is $1200. They suspect that the average fee charged by one particular clinic for this procedure is higher than$1200. The insurer wants to perform a hypothesis test to determine whether their suspicion is correct. Preliminary data analyses indicate that it is reasonable to apply a z-test. The hypotheses are

H0 = $1,200 H1 > 1,200 σ =$180
n = 38
α=0.10

Find the probability of a Type II error and the power for μ = $1075,$1100, $1150,$1175, \$1190.

Use the values to sketch a power curve.
Any help is much appreciated.

2. I've been asking for help and others just keep stating WHAT a type II error is, which I understand, but I am unaware of the procedure to calculate individual power statistics.